We’re gapping up a bit this morning. Let’s see if we can push above yesterday’s range. I wouldn’t be surprised to see more sideways action ahead of tomorrow’s payroll report.
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
AUXL -20% (suspends Phase 3 trials), PARL -9% (Perry Ellis re-acquires its fragrance brand from PARL), LQDT -7.2% (reports Q3; guides below consensus), TOPT -8.5% (reports Q3), TLAB -5.2% (JP Morgan downgrade), VIFL -4% (profit taking after recent run), TKLC -3% (Susquehanna downgrade), HSY -2.8% (guides lower; also Goldman downgrade), WY -2.5% (co says it expects production cutbacks due to weak housing mkt), SIGM -2.5% (Greenberg negative on stock on CNBC), VOLC -2.4% (prices stock offering), SCD -2.3%, AUO -2% (reports Nov revenue), CTXS -1.9% (RBC downgrade), RIMM -1.9% (RBC downgrade), MOVI -1.7% (profit taking after 16% move yesterday)… Under $3: TVIN -10% (to restate Q3 on accounting error).
Gapping Up
VNDA +66% (positive phase 3 data for its schizophrenia drug), TTP +65% (receives royalties from VNDA), GIII +17% (reports OctQ, beats by $0.15, Brean Murray raises tgt to $24), DLIA +9.3% (reports OctQ; FBR calls the qtr a turning point), PLB +6.6% (Stifel upgrade), NMGC +6.2% (extends yesterday’s 12% move), METH +6% (reports OctQ), AGIX +5.1% (First Albany upgrade), LVLT +4.7% (on Mad Money, Cramer says LVLT is the ultimate speculative growth stock for 2007), IIJI +4.7% (listing to be transferred to 1st section of Tokyo Exchange), MEDX +4.2% (announces FDA fast track designation), GERN +4.3% (Australia lifts ban on cloning human embryos – Int’l Herald Tribune), FRD +4.1% (extends recent momentum), ALU +4.1% (Goldman resumes coverage with a Buy), SANM +4%, UBS +1.3%, CS +1.3%… Under $3: LIPD +14% (positive clinical data), ADST +10% (BWS initiates with $4 tgt).
Disclaimer & How I use this list
Ugh! I’ve been trying to create a new post since 5 PM… Looks like I’ve (we’ve) killed another server. My host is “upgrading” me to a new server & plan so I may not be able to update the site until they finish the migration.
What I would have pointed out tonight is that those Nasdaq leaders which I pointed out yesterday — GOOG, AAPL and now also RIMM — continued to slip today. The NDX / QQQQ is already real close to breaking last Monday’s low, which marked the confirmation point of those falling three methods patterns.
I was also planning on showing good old T2108. It got above 80 the other day, which is a sign of an over-heated market. It dropped to 79.84 today.
Let’s see, other stuff… Still no higher-high for the Naz, let’s see if it makes a lower-low. CNBC was going nuts over a new intraday high on the Dow this morning, although on my charts, it missed the old high by 25 cents. The market started rolling over just as Mark Haines was patting himself on the back for “calling” the new high.
Ugh is right–hang in there!
The Q’s have been forming a diamond pattern on the daily since mid November—from page 129 of Jiler’s ‘How Charts can help you in the Stock Market’:
“The Diamond is most often found after a big swing in price. It is an exciting time, with the public alternately enthusiastic about the stock and worried about it. This naturally causes prices to fluctuate. If there were less excitement, prices would hold in a more or less horizontal channel, refecting a momentary balance of supply and demand. Instead, prices seesaw with greater and greater swings, on high volume. Then the excitement begins to fade, the price swings contract and volume declines noticeably. The highs and lows of this period now form a Diamond. When prices later break through its high or low, volume may be expected to pick up sharply (this has not yet happened, 43.30ish is the lows for the Q’s diamond).
Diamonds are trickier than the other Continuation Patterns we have just discussed—-in fact, some of them develop into Reversal Patterns. Further, they sometimes are confused with other types of patterns. The price movement may look like a Head and Shoulders, or an Extended V. The distinquishing marks of the Diamond are its upper and lower points, and its volume behavior. One pattern of development after Diamonds form is worth noting. Often, prices will break down through an apparent Diamond top and later turn to rally to sharply higher ground. Tricky or not, Diamonds often are followed by exciting developments; as every woman knows, they are worth collecting. (this was written in the early 60′s, before the advent of bling!)”
This is the third Diamond as a stock pattern I have noticed, so they are rare.
Here is an example of a diamond pattern:
http://www.hquotes.com/charts/020801.html
Though the Q’s have not broken down past the its diamond lows, it has broken down past the diamond shape. It is also a relatively small diamond in terms of weeks of formation. Another aspect is that a measured down move would bring it to around 42.50ish (length of the diamond from its highs to lows measured from the mid of the diamond).
Michelle B,
What on tap for the next great article? I look forward to it. Also, I picked up Trading in the Zone for the second time and feel like I missed 3/4 of the book. What a great great book. I probably need to read it and implement what I read about 20 times before I find it’s true value which happens to be priceless. Without that book, I would be backtesting to find the hold grail. Now I realize that the holy grail was and alway will be in my head.
LP
Lloyd, good stuff–you are the one that makes money not the market, not indicators, trading tools, etc. I understand Mark’s first book about 90%, and that is after 10 readings spread out roughly ten years!
I am working on several articles in draft form. One is “What you always wanted to ask about daytrading but was too afraid to ask”.
The end of the year is fairly busy for me, so writing articles at the moment is not my top priority. Bloggers who feed their blogs with high quality content each and every day have my utmost admiration.
And for the second time this week my Comcast connection is down. Good thing I can use my Treo as a modem. It’s nowhere near as fast as my cable modem but it gets by.
Here are today’s gappers. It’s so funny to me to watch these guys on CNBC. They were all smiles & high fives immediately after the jobs data, as the futures ticked higher. Of course, the futures rolled over while they celebrated. Good thing (for them) none of them actually trades.
Up:
CMOS +18% (reports OctQ, guides JanQ revs above consensus; also upgrades from Needham and Canaccord Adams), PXPL +18% (extends yesterday’s 17% move), ENCY +14% (receives FDA clearance to resume clinical trials for TBC3711), DLB +5% (Cramer bullish on Mad Money), DIVX +4.4% (extends multi-yr deal with Google), TGEN +3.1%, ANDW +2.9% (OpCo upgrade), IMMU +3.6% (extends yesterday’s 10% move), TOMO +2.6%, EBAY +2.4% (Cramer bullish on Mad Money, calls it a value play), BCS +1.8% (BofA may interested in buying co citing Merrill–DJ), DIS +1% (Cramer bullish on Mad Money).
Down:
TSM -19% (reports Nov revenue in 6-K filing), CENT -12% (reports SepQ, also multiple downgrades), SWHC -8% (reports OctQ, guides below consensus), ACOR -10% (FDA recommends an additional Phase 3 trial for Fampridine-SR), XLNX -6.2% (guides lower, also JP Morgan downgrade), CHK -4.4% (prices offering), ACLS -3.8%, TECD -3.4% (JP Morgan downgrade to Underweight), HTGC -2.8% (files amendment to stock offering), YRCW -2.8% (multiple downgrades), UBSI -2.8%, TYC -2.4% (Pru downgrade to Underweight), ERTS -2% (NPD data released), TTM -1.9%, ATW -1.8% (reports SepQ, misses by $0.04), IPG -1.8% (Wal-Mart to reopen ad account review), YUM -1.8% (Wachovia downgrade), SIRI -1.3% (BWeek article: Obstacles to an XM, Sirius Merger).
Whoa, the diamond action in the Q’s is wild as expected, price is back up past the mid point of the diamond pattern (at 11:30 ET). At this point the diamond may become a reversal of a reversal, and I would expect nothing less from this pattern. I just stand aside, and watch it in awe.
test
You’re back!
pretty much… more fun with web hosting. x(
Man…I thought it was my internet…Good to have you back
Thanks Lloyd, it’s good to be back. I think I just fixed the last thing. The new server seems to be performing well so far. The true test will be tomorrow morning when the site traffic picks up.
Michelle, good call on the diamond formation, I’ve come across some articles on this topic, and find it interesting as the market fuses on.
Cheers.
-Cal
Mike – thanks for being there at any level -
Michelle is great – I know all the decisions to change are enormous for you as you have built an large database of all your stuff.
my best to you, paul
Thanks Paul. How’s Arizona treating you?
CalTrader, thanks.