Early Bird Report 11-22-11
The Early Bird Report 11-22-11
Gapping Up– ZLC BRCD MDT SIG GCO
Gapping Down — HPQ TSL PSS JKS PWRD FRO
No indication — JACK STP LDK CSIQ HRL CTRN EJ JASO DSW CBRL DAKT CHS CPB FRED ADI
Corporate news/rumors: LNG NFLX CTRP BWEN ROYL FIO
Under $10 long momentum looks with strong closes/actionable charts: PNSN VICL HKN CBLI IPSU CT CCRT
Over $10 long looks w/ strong closes/actionable charts: EBIX SPPI BYI ETP IOC
Stocks pulled back to major MA’s:
200d: HSY PANL CF MRK CRR RAX JWN 50d: MKSI THG WOR ADTN D DHR ABT SNA GRA SUN IBM PAYX GT SPG
Doji Reversal candles: BBBY CRM GPS SHLD WCN
Weak closes/short looks: TTMI HGR SGI DDD CXW PLD SYK NAT VPRT LHCG YOKU
3 ideas for today’s trading day: The close we get to the holiday, the harder it may be to find follow through in any traditional “setups”…not that we’ve found much follow through lately, anyway. It just seems as though the moves are more of a drift, rather than ones that see any real volume behind the moves. I honestly had a hard time coming up with 3 trade ideas even. SO, we’ll have to be very picky with trades today…no chasing, and only setups that come in names that are trading with above average volume and that have multiple catalysts working for them.
These are ideas…. NOT recommendations. 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.) SPPI long
The company received some positive FDA news yesterday (1), traded up to 52 week highs, (2) on heavy volume, (3) out of a nice bull flag pattern (4). Those are 4 pretty good catalysts for the stock and if we can find a nice pullback or consolidation today on the intraday chart, it could be a nice long look to continue momentum. The 13 level was resistance yesterday…a break of that level is one way in…the other would come on any sharp opening bell pullback.
2.) HSY short
This stock has done a nice job of holding its 200d MA. However, I personally like to see stock bounce once they have tested that MA. HSY just seems to be coiling here at the 200d and if we get further weakness in the market, I can see a break of that level as a catalyst for a downside move. I would look to short a move below 56, but only if the market is very weak at the time. I would also avoid shorting a break of that 56 level at the bell…probably best to wait it out and see what the market tone is for today.
3.) ETP long
Bullish run into the close yesterday…after holding the 43.50/50d MA level twice yesterday, it ran up to close at highs at 44.30. Watch for a move past that area today…though I would likely avoid pulling the trigger long unless we have strength in the broad market and within the sector. If all stars are aligned, I’ll be looking to get long.