Watchlist for October 15, 2008

Sorry I didn’t get a chance to do a recap last night. I was tied up propping up Apple’s stock, er, buying an iPhone and taking care of some other stuff. If you have an iPhone and don’t have the Bloomberg iPhone app you should really go get it. It’s much better than the default stock application. Anyway, here’s a shot of the Nasdaq chart. It peaked right at last Monday’s gap which happened to coincide with a downward sloping trendline.

I saw a ton of potential shorts when going through my swing trade scans last night. Just run scans for shooting stars, NR7s, bearish engulfings, or dark cloud cover patterns and you’ll see what I’m talking about. The problems I would have with taking most of them are — earnings and options expiration are right around the corner and most of the setups don’t give a good risk/reward b/c yesterday’s ranges were so large. I am going to watch a handful of stocks that made NR7s yesterday and may day trade some of them.

On Today’s Calendar:

• 10:00 — Business Inventories
• 10:35 — Crude Inventories
• 2:00 — Fed’s Beige Book

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

Potential swing trades:

Note: I have yet to check when these companies release earnings: AET, LZ, APOL, NTES, PRU, CHRW, EBAY, BG, TTEK, TRLG, DAI

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: LLTC -15.8%, DAL -4.8%, STT -4.7%, SCHW -4.6%, ASML -4.3%, JNY -4.1%, JPM -1.8%, WFC -1.2%… Select financial related stocks trading lower: KEY -11.9%, ING -9.4%, GS -6.8%, C -5.7% (Citi’s rally ignores data like losses – WSJ), MS -3.6%, AIG -3.6%, DB -3.3%, BAC -2.3%, CIT -1.8% (announces $0.10 quarterly dividend and intention to sell approx. $8 mln of common equity)… Select metals/mining names showing weakness: AAUK -12.4%, RTP -8.9% (says long term outlook for co remains positive despite the upheavals in global markets; Chinese economy is pausing for breath), BBL -8.8%, BHP -7.8%, FCX -7.2%, RIO -6.5%, MT -5.0%… Select drybulk shippers trading lower: EXM -10.3%, FRO -6.3%, DRYS -6.2%, DSX -2.8%… Other news: UN -4.7% and UL -3.3% (still checking for anything specific), NOK -3.3% (still checking)… Analyst comments: EBAY (downgraded to Underperform at Merrill), STM (downgraded to Underperform at Merrill), DELL (downgraded to Neutral at JPMorgan)

Gapping Up

In reaction to strong earnings/guidance: TSL +7.1%, KO +6.8%, ALTR +5.8%, DNA +3.9% (also upgraded to Buy at Piper and upgraded to Buy from Hold at Citigroup), INTC +3.0%… Other news: LYG +7.4% (checking for anything specific)… Analyst comments: LVS +7.2% (upgraded to Overweight at Weisel), BYD +4.2% (upgraded to Overweight at Weisel), AAPL +2.0% (upgraded to Overweight at JPMorgan), WYNN +1.4% (upgraded to Overweight at Weisel), CRM +1.1% (upgraded to Buy at Soleil).

Disclaimer & How I use this list