Early Bird Report 4-27-12
SPY’s have shrugged off the afterhours drop yesterday after the Spain downgrade, and are now looking to gap a bit higher this morning (as of 7:30 a.m CT) after a nice, sustained push higher yesterday. Hard not tobe a little more bullish here in the medium term after this recent price action, but short term we have to remember we’ve rallied 4 straight days now after looking seriously weak on the daily chart after pushing down out of that bear flag on Monday. Plenty of earnings plays to sink teeth into still, as well as some second day plays, and as always on Fridays (especially after a strong week like this) I’d imagine the action may dry up as we head into the lunch hour, barring any major developments.
News/Earnings Stocks (as of 7:30 a.m. CT publication)
Gapping Up– AMZN ZNGA EMN CRAY EXPE MXIM ABAX AAN SWKS RMD OIS AEM JAZZ AWRE NWL PPC MRK KKR CERN SPN WCRX ALV F SPG IMAX
Gapping Down — DECK FIO SBUX MDRX CVX VRTX INFA CSTR WDC ATHN N CELL SYNA RSG BJRI KOG VPRT NANO VRSN SIMO TESS KEG DGII PG VFC HMSY POZN MXWL CTCT CPSI B KLAC
No indication — COV ASGN COHR LAZ THRX IM ELGX BMRN GILD COLM PKI BYI NXPI TNAV MIPS NATI QLIK AVID AMKR CPTS GDOT HITT INAP ARBA OFIX GB FBHS HLS SCSC LEG TSRA CMP ANGI CHH UHS TCO TAL GIFI WSH ZBRA WY NAFC MGLN IP SAIA LPNT VTR BIN KVHI DTE FLIR HELE
Watchlist: This is a breakdown of stocks w/ certain technical characteristics in light of yesterday’s action, NOT a recommendation to Buy or Sell. Always consult your own registered broker/advisor before initiating any positions.
Under $10 range break long momentum looks with strong closes/actionable charts: VALV RCON LINC SCHS JVA FRO HUSA XCO SUNH RTK IPSU
Over $10 long looks w/ strong closes/actionable charts coming out of a range: AME FIS AAP COST EMN DG AIG LIZ VFC CMCSA FTK AVT COV COG WYNN HRC ANF SOHU OPEN CYT
Weak close/weak chart/downside range break: UAL CIEN KMT VAR BLL JDSU WCG FTNT CLF WBMD
GoPauseGo: NSR BA PNRA HOG CRS TKR ONXX MSI VAL EW VVUS CERS HA SIGA
Pocket Pullback (3-5 day orderly pullback from strong trend): MLNX
Up to 200d: HFC BGC AEP RRC RIG CRZO HSC GPN
Up to 50d: LAMR HPQ BKE NWS KEX PKI CVA DWA CLH CBG DNR GT AAN SDRL CVX SIG EXC OFC
Up to 20d: IAG COST BEAM TSN HNZ JPM MW SEIC LULU DV MXIM BBG HSC APA JBL TGT
Down to 20d: SWY UAL FAF TWC
Down to 50d: IGT BLL
Down to 200d:
Current Positions in our Ditto Trade Mirrored Swing Account:
Long DDD from 22.05 (1/2 of original position. Sold 1/2 at 26.90).
Long ESRX from 56.25
4 ideas for today’s trading day:
These are ideas…. NOT recommendations. The idea behind this section of the report is to illustrate my thought process when looking at potential swing and day trades. Often times I trade these setups, many times I don’t…dictated by market tone for that day. Complement these ideas with your ownresearch before making any trading decisions. Always consult your own registered broker/advisor before initiating any positions.
1.) Breakout long: OPEN
Put in a nice surge on the open yesterday, and unlike normal, its was able to hold those gains…closing up in the top quarter of the days range. Probably some more quality names in the range break category out there (we’ll be watching those too), but the high short interest has our attention here in this name after yeserday’s move. Would actually like to see this one start red and buy the turn to green as a play rather than having to chase through the 45 area. Will have to get a feel for the market and volume on the open.
2.) Pullback long: MLNX
Been pulling back ever since blowout earnings last week. Tight range yesterday and didn’t try and push below Wed. support at 55. Will wait out the open to see what the market tone is, but if this can either hold support again or push out bpast 56.75, I’ll be looking for a long entry.
3.) Small cap or sub $10 momentum long: RTK
Nice clean break of 2.20 resistance area on decent (but not great) volume. Will need as good or better volume today in order to see follow through, but its a good name to keep an eye on either way. The chart has been solid since breaking the 1.00 mark last October.
4.) Traditional short: LULU
Nice two day bounce to short into here as it comes up to its 20d MA. Former hot shot retailer DECK had some bad earnings last night….not that it should affect LULU directly, but may serve as a cautionary tale for those in the name. That stock used to trade much like LULU. Hoping for a failed move higher and then a move into the red to get short. Day/morning trade only.
The creation of this morning’s Early Bird Report was compiled while listening to the music of Phish