Well, the Fed’s out of the way so all we have to deal with now is options expiration games. I was tempted to post some charts last night but I decided not to for a couple of reasons:
- I rarely trust the action in the hour and 45 minutes after a Fed decision. It often seems that it takes another day or two for the real reaction to come out. In the pre-market today the QQQQ has given back most of its post-decision gains from yesterday.
- It’s expiration week — you know how I feel about that.
FWIW, it looks like the S&P 500 is on the verge of breaking out to new highs and I saw a good number of long setups in my scans last night. So I was prepared to play the long side today but what I’m seeing this morning has me doing a 180 degree turn. Hopefully I can get a better read by 10:15.
At the top of my list today are BIDU and AAPL as shorts. Let’s see if wither of them gives me a decent entry.
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
SCLN -22% (Hepatitis C drug fails to meet target in trials), NMGC -12% (profit taking after recent run higher, but rebounding a bit on pricing of stock offering), BIDU -8% (share float increases as insiders can now sell), DGII -15% (lowers guidance), POL -14% (extends recent move), PKS -6.3% (co no longer for sale, names new C.E.O.), CERN -5.8% (WSJ article re potential accounting issues), AFFX -3.8% (Merrill resumes with a Sell), MATK -3.4% (reports OctQ), AAPL -3% (downgrades from BofA and Bear Stearns), SIFY -2.9%, ERTS -2.5% (Citigroup downgrade), MSSR -2.3% (extends yesterday’s 6.2% drop), NGAS -2.1% (convertibe notes offering), LF -2%, CRXL -1.9%, GDT -1.4% (NY Times article re 3 new deaths)… Gold stocks seeing some profit taking: BGO -4%, GLD -1.1%, CDE -1%…. Under $3: EONC -20% (reports Q1), FUEL -10%, EMRG -5%.
Gapping Up
ANT +33% (to be acquired by GD), ARNA +18% (positive clinical data), CMRO +13% (reports Q3; new contracts), AKN +13% (FDA clears Decatur facility), SUF +6.3% (to Supply Sonocracking processing equipment), CUTR +4.8% (bounces after yesterday’s 34% drop), DEPO +4.6% (co and Biovail revise partnership agreement), ADCT +4.4% (reports OctQ), SIRF +3.8% (Mad Money mention; a play on GRMN), APPX +3.4% (receives FDA approval), ATVI +3% (positive Citigroup call), NYB +3% (Citigroup upgrade), RHAT +2.7% (FTN Midwest upgrade), GLW +2.2% (Mad Money mention), HON +1.7% (reaffirms), UARM +1.6%, VRTX +1.6% (Goldman upgrade), MO +1.1% (positive broker comments ahead of IL court ruling tomorrow), BA +1% (wins orders), HLF +1% (prices offering near closing price)… Under $3: TBUS +12% (orders), INSM +5.5% (extends yesterday’s 10% move).
Intraday Updates:
- 10:05 I forgot to mention that the oil inventory report hits at 10:30
- 10:08 CERN’s really getting slammed
- 10:33 Obviously it’s a mixed market today with the S&P and Dow up and the Nasdaq down. The A/D lines are positive on both the NYSE and Nasdaq though. Nasdaq is now trying to turn green for the day — I may have to step out of my bear costume.
- 10:37 The S&P is about 50 cents from a new 52-week high. Things are about to get interesting
Disclaimer & How I use this list
What do you think of AMZN as a short, Mike?
-sunyao
Too much sideways action in AMZN for my liking
Hi I visit your blog daily and think it is great! I am a new trader- 1st year. My question is when do you typically stop trading and start again during the holidays? Thanks, K8e
Katie,
First, welcome to the fold. I hope your first year has gone well. I don’t have a set time to take off for the holidays but the week between Christmas and New Years is usually a low volume affair. Some traders love those kind of environments though b/c you’ll often get wild moves. Me, I try to avoid those times.
It usually does take a day or two to realize the true reaction after the fed reports, but it’s usually a good guide based on the market’s reaction within the first hour. Then again, no one ever got their head cut off waiting a day or two.