The futures have gone into a nose-dive due to the CPI data. The bulls are in for another test this morning. Perhaps this will cause that capitulation day I talked about last night. I’m considering trying that gap-fade play again but I’m just not ‘feeling’ that today. I’d rather try to buy a little after a morning of relentless selling. You know, those days when it seems like stocks will never go up again? Then buyers suddenly appear at 2:30.
Update: I just took a look at the QQQQ daily chart to see where it might find support. The Qs have just entered a gap from early November. The bottom of that gap is at 39.35. That’s the area I’m watching for support if things really get ugly today. Here’s the chart:
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
ESCL -9% (extends yesterday’s 19% drop), PEIX -7% (WSJ report about insider sales), MRGE -6.9% (announces changes to sr mgmt team, updates accounting and regulatory matters; Wm Blair downgrade), RLH -6.1% (prices offering), NBIX -5% (extends yesterday’s 62% drop; also multiple downgrades), BKHM -4.5%, CHRS -4.5% (reports AprQ), QCOM -4.5% (patent issues), XMSR -4.4% (Music industry sues XM over replay device – WSJ), AAUK -3.7%, CCL -3.4%, ABB -3.2%, RTP -3.1%, HOM -2.4%, DRIV -2.4%, DCX -2.3%, ALA -2.2%, ERICY -2.2%, ELN -2.2%… Under $3: VTSS -30% (credit facility default; announces new mgmt; expands option trading probe; gets delistig notice), FUEL -14%.
Gapping Up
Gapping up on strong earnings/guidance: HPQ +4.3%, LTXX +20% (also Merriman upgrade), LTON +12%, OLAB +10%, TOO +4.5%, ANF +2.8%, NTES +2.3%… Other News: TRGT +8% (positive clinical data), ONXX +6.3% (Pru upgrade), AMCC +5.9%, TASR +4.9% (files 8-K, will adjust financial results), MT +3.5%, ACLS +3.4%, TIE +3%, ADSK +2.5% (Piper upgrade), MEDI +2.3% (Bear Stearns upgrade), ASML +2%, BRCM +2% (UBS raises tgt to $60)… Mad Money mentions: SMSI +6%, ESLR +3.9%… Mining stocks are strong as gold is higher due to Iran’s rejection of EU calls to suspend uranium enrichment: NXG +6%, HMY +5.9%, AUY +5.8%, GFI +5%, HL +4.2%, SLW +3.9%, BGO +3.8%, GG +3.2%, ABX +3%, GLD +2.9%, CDE +2.7%, GLG +2.4%, KRY +2.1%, NEM +2%… Bird flu stocks are higher on headlines out of Hong Kong about the possibility of human-to-human bird flu virus transmission: GNBT +8%, NVAX +4.3%… Under $3: IAO +27%, LOUD +20%, GLE +14%, CBMX +11% (to initiate govt funded screening program; also appeared on CNBC), GV +9%.
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