Watchlist for September 9, 2008

It looks like I missed a wild session yesterday. Two things stood out to me as I looked through the charts though. First was the S&P 500 stopping right at its 50-day moving average. So I’m watching the action there closely. Second was the striking weakness in technology. The QQQQ actually closed lower thanks to weakness in GOOG and AAPL. That technology weakness really makes me think that this relief rally will be short lived.

On Today’s Calendar:

• 10:00 AM — Pending Home Sales
• 10:00 AM — Wholesale Inventories

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. Also be sure to check my typical swing trade entry & exit rules.

Potential day trades:

(From Briefing.com)

Gapping Down

In reaction to disappointing earnings/guidance: FUL -16.1%, AVY -10.7%, MYL -3.4% (light volume)… Select mortgage/financial names showing weakness: SCA -8.4%, WM -6.3%, LEH -6.0% (South Korean FSC Chairman says KDB, Lehman investment talks have ended – DJ), MTG -5.7%, ABK -5.3%, PMI -4.2%, BAC -1.1%… Other news: TWTC -15.7% (discloses mid quarter update information on sales and revenue trends in 8-k; also downgraded to Neutral at Merriman and downgraded to Hold at Citigroup), CSE -9.2% (declares Q3 dividend of $0.05, down from previous dividend of $0.60), ACGY -6.5% (still checking), KIM -3.6% (announces offering of 9 mln shares of common stock), HL -1.9% (prices offering of 31.0 mln common shares at $5.00/share), NOK -1.7% (still checking for anything specific)… Analyst comments: MEE -6.4% (downgraded to Market Perform at Friedman Billings), PCX -3.9% (removed from Top Picks list at Friedman Billings), WB -3.1% (downgraded to Underperform at Merrill), SNDK -3.0% (downgraded to Hold at Lazard Capital), PHM -2.9% (downgraded to Neutral at Credit Suisse), TXN -2.5% (downgraded to Outperform at Raymond James), BBY -1.6% (downgraded to Neutral at Piper), TOL -1.3% (downgraded to Neutral at Credit Suisse).

Gapping Up

In reaction to strong earnings/guidance: EFUT +16.3%, FNSR +14.4%… Select airlines ticking higher with crude lower and strength in dollar: LCC +6.1%, DAL +5.2%, AMR +4.1%, UAUA +2.6%… Select European financials trading higher following strength in overseas trading: UBS +3.7%, BCS +2.9%, DB +2.8% (upgraded to Hold at Societe Generale), HBC +1.9%, LYG +1.6%… Other news: BIOD +13.6% (modestly rebounding following yesterday’s 60%+ drop), DELL +2.2% (CEO Michael Dell disclosed the recent purchase of 4.878 mln shares in a filing out after the close last night), AZN +2.1% (ONGLYZA with metformin as initial combination therapy significantly lowered A1C and demonstrated improvements across key measures of glucose control in treatment naive people with Type 2 diabetes), SNDA +2.0% (light volume; announces $200 mln share repurchase plan and proposed offering of $130 mln convertible senior notes), MCD +1.7% (reports global comparable store sales +8.5%)… Analyst comments: GLW +2.4% (upgraded to Overweight at Weisel), HPQ +1.9% (upgraded to Outperform at Bernstein), MA +1.4% (upgraded to Outperform at Fox Pitt).

Disclaimer & How I use this list