They’re trying to take ‘em up this morning. I’ll be watching how the S&P acts at its 50-day moving average (~1,274), which should be at least some resistance. Don’t forget the oil inventory report gets released at 10:30. Keep an eye on USO and the energy stocks.
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
OPWV -26.5% (guides JunQ well below consensus; gets subpoenas regarding options; OpCo downgrade), OTEX -12% (guides; downgrade from tier-1 broker), JDAS -10.6% (provides Q2 guidance), SNRR -7.2% (announces Nasdaq delisting and informal SEC inquiry), PFCB -6.4% (guides below consensus), ESV -3.9% (light volume, 2,000 shares), AAV -3.6% (announces cash distribution), FMD -2.9% (negative broker comments), XMSR -2.4% (sub guidance below consensus), ARMHY -2.3%, BAY -2% (issues 34 mln new shares for Schering deal – Reuters)… Retailers gapping down on disappointing June same store sales: ZUMZ -5.1%, ANF -4.4%, COST -2.5%, KSS -1.6%, PSUN -1.4%… Mining stocks are weak as commodity prices tick lower: KRY -3.3%, EZM -2.7%, NXG -2.6%, CUP -2.5%, RTP -1.4%.
Gapping Up
AD +49% (to be acquired by VCI), NVTL +9.4% (guides revs above consensus), WFR +8.6% (signs solar supply pact with STP +5.5%), ACMR +6.5% (reports Q2 revenue), NUHC +6.7% (reports MayQ, beats by $0.04), TZOO +4.6% (extends yesterday’s 11% move), XING +2.8%, TIBX +3.7% (Merrill upgrade), RMBS +3.5% (signs patent license agreement with Matsushita), SIRI +3.4% (reports Q2 subs above consensus), SAP +2.9% (Merrill raises target in Germany by 15%), MRGE +2% (stock recovers a bit following 38% drop on Monday on exec departures), AA +1.7% (Cramer bullish on Mad Money), TS +1.4% (recovers a bit from 4.5% drop yesterday), SNY +1%… Retailers gapping up on strong June same store sales: TGT +3% (co says it expects to meet or exceed Q2 guidance), AEOS +2.3% (also raises guidance), GPS +1%… Under $3: XOMA +12%, ARDM +11% (extends yestreday’s 29% move on Novo Nordisk deal), MCEL +7.7% (wins Army contract), NYER +5.4%, IVAN +5.1% (operation resume at oil facility), CPST +4.3% (added to Russell 3000 Index).
Disclaimer & How I use this list
Do you only use your strategy (waiting until 10:15 and then playing consolidations’ breakouts) on individual stocks or on indices as well? Have you thought of using deep in the money options with this strategy?
I don’t really trade indices… only the QQQQ once in a while.
I don’t trade options.
Any specific reasons for that? You could get a much better leverage with options, and control your risk the same way with ITM options and position sizing. ITM options would almost move like the stock (delta close to $1), so it would be easy to calculate how many contracts you should buy depending on how much you want to risk. This way you would still control your risk, but could improve your reward because of leverage. And with daytrades you would not have to worry about time decay. Just my $0.02.
Also, this strategy might work well with indices as they are extremely liquid.
I’ve just never taken the time to learn about options.
One small problem with trying to use options for daytrading is the large bid/ask spread, especially on the options for individual stocks. Also, liquidity coould be an issue when/if you need to move in and out fast causing much higher rates of slippage…