Posted by 19 December 2006

Watchlist for December 19, 2006

We’ve got a gap down open for a change. The Qs are approaching the December lows and I imagine that level will bring out some buyers once again. I’ve been expecting that level to break for a while now (remember that failed falling three methods) so I’m a bit hesitant about doing another gap fade. But I think I’ll do it anyway but I may push my stop to break even pretty quick if we do get an early bounce.

On Today’s Calendar:

  • nothing

More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic

Potential swing trades:


See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.

Potential day trades:

(From Briefing.com)

Gapping Down

APSG -17% (reports OctQ; misses by $0.16; also downgrades from CIBC and BB&T), CC -14% (reports NovQ, misses by $0.14, guides revs lower), TUES -12% (guides below consensus), EMKR -9%, NSTC -8% (announces acquisition, Susquehanna downgrade), PGLA -7.6% (profit taking following recent move), FCEL -6.3% (reports OctQ), NVEC -5.1% (extends yesterday’s 10% drop), ENCY -4.7% (extends yesterday’s weakness), ORCL -3.2% (reports NovQ), HOV -3% (reports OctQ), BIIB -2.9% (FDA issues alert as two people die after taking Rituxan), RBAK -2.9% (RBC downgrade), TSM -1.9% (fab shuts down due to power problem – DigiTimes), AAPL -1% (extends yesterday’s 2.6% drop), TWX -1%.

Gapping Up

EDA +36% (to be acquired by American Apparel), ESCL +33% (Audit Committee investigation is complete; co to restate results), TOMO +13% (co to enter joint venture with EBAY – Reuters), KERX +8.4%, CSLR +6.6%, SCHL +5.1% (reports NovQ), GMKT +5% (Cramer bullish on Mad Money; says co could be the next EBAY), GERN +5% (positive clinical data), ACTU +4.3% (renews deal with Oracle), MEDX +3.7% (recovers after recent sell-off), CUP +3.7% (extends yesterday’s +14% move), TTF +3.4% (bounces after 9% drop yesterday), ARMHY +2.4% (launches new product), MS +1.9% (reports NovQ), F +1.7% (Morgan Stanley upgrade)… Under $3: GNVC +50% (positive clinical data), DOC +11% (wins contract extension; also ADSX +3.6%), ZILA +6.2% (executives enroll in stock purchase plan).

Disclaimer & How I use this list

Note: These alerts refresh/update automatically every 30 seconds
RSS Feed Subscribe to get Free Updates.

Comments

  1. Posted by Steve on December 19, 2006 at 3:29 pm

    So, did you fade the gap?

  2. Posted by Michael on December 19, 2006 at 3:34 pm

    I did but I got out way too soon, around 10:20 & only made 7 cents per share on it. The bounce looked so weak I wrongly assumed that the bulls wouldn’t be able to completely fill the gap. Silly me, the gap got closed once again.

  3. Posted by l'andorrana on December 19, 2006 at 4:40 pm

    Mike

    define “fade the gap”, would you?

  4. Posted by Michael on December 19, 2006 at 5:14 pm

    I posted links explaining the gap fade yesterday. In short, fade means “to go against”. So buy a gap down and short a gap up.

    Fade:

    A contrarian investment strategy used to trade against the prevailing trend. “Fading the market” is typically very high risk, requiring the trader to have a high risk tolerance. A fade trader would sell when a price is rising and buy when it’s falling. Also known as “fading”.

    An example of fading would include buying on a dip in price and selling when the price rallies. Often it’s a rather volatile strategy, but one which offers the potential for significant short-term gains. It requires little in the way of complicated analysis but the risk that trend continues is always present.