Early Bird Report5-31-12
We’ve seen the SPY’s go from a decent gap higher down into the red here in the pre-market after GDP and jobs data were released. The market was very heavy yesterday, closing on lows and felt much like the action earlier in the month. 131.49 was yesterday’s lows (around 131.30 in afterhours), and bulls would like to see that level hold. As I mentioned yesterday, I just don’t know how much support there will be below there, and would set up a situation where the market gets pulled like a magnet down to a retest of the 129.55/130 area.
News/Earnings Stocks (as of 7:30 a.m. CT publication)
Gapping Up– ZUMZ CIEN GNRC MVIS LEAP TJX
Gapping Down — LGF CHTP JOY BMRN FFIV
No indication — TLYS TIVO
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: NCIT NEON LMOS AMPE
Over $10 long looks w/ strong closes/actionable charts coming out of a range: AAPL LF ASNA TFM
Weak close/weak chart/downside range break: DEI RIG CTSH SXCI CBI CB KBR WAG UIS ROSE CTCT FLR CLP COV HPT LINTA EQY SLB TCO RKT CLB TRV
GoPauseGo: MDCO WWWW COST CMG SZYM IN MBI BONT
Pocket Pullback (3-5 day orderly pullback from strong trend):
Up to 200d: SLM HRB VSH
Up to 50d: N HBI ENS
Up to 20d: CF FRX
Down to 20d AEO
Down to 50d: FE SGEN ECA
Down to 200d: ACN DD LINTA
Current Positions in our Ditto Trade Mirrored Swing Account:
Long DDD from 22.05 (1/4 of original position. Sold 1/2 at 26.90 and stopped out of 1/4 at 30.76).
Long WYNN from 105.53
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:WWWW
Looked ready to breakout after a strong day Tuesday, it sat back yesterday as the market sold off, and traded in a tight range here underneath 52 week highs. Watching today for a move above 16.30 for a long trigger w/ an eye on relative volume. Below 15.60 will ignore for now.
2.) Small cap / Sub $10 long: AMPE
Nice pop into the close yesterday on some decent relative volume. has built a decent base down here near lows, never really able to crack below 2.50 after several tries. Seeing some European patent news hit the wires this morning. Not sure if that was the reason for the pop yesterday, but will watch for some follow through today. Below 3.00 will ignore/exit.
3.) Pullback short:HBI
Still feel like this market is presenting that its safer to sell pops rather than buy dips right now. HBI is a name that has had nice run of late, bouncing from 24.64 up to its 50d here around 27.90, where it closed yesterday. I won’t be selling the name if it manages to trade above there, but may look to enter a short if it trades back below that level for a mean reversion trade…especially if the market is weak.
4.) Traditional short: TCO
Real Estate names were some of the last names to hold up very well as the market was rolling over. However, the bullish action has been somewhat muted during the last market mini-rally off lows and now many of those names appear to be rolling down out of bearish flag formations. TCO fits the bill and I’ll be watching for a short through 72.50 if the market and the sector continue to show weakness. Will have to be wary of any sort of sector wide bounce though, so I won’t be short if the stock or sector manages to trade green.
The creation of this morning’s Early Bird Report was compiled while listening to the music of LCD Soundsystem