Early Bird Report 6-5-12
Early Bird Report 6-5-12
SPY’s are trading mildly lower here pre-market, after more hand wringing over uncertainty in Europe and ahead of the G7 call. We’re back under the 128 level (and 200d) after a decent final hour move to the upside yesterday may have piqued some long side interest. 127.14 was the pivot area from yesterday afternoon, and lots of eyes will be on that level again today if we trade down there. Yesterday, I had 127.34 as near term support, without much underneath…nothing has really changed, except 127.14 is the level now. I’m giving this market a lot of respect and am wary of downside pressure. Best case scenario (like always) for bulls and long side trades would be an early spike lower that gets rejected and the market can turn green.
News/Earnings Stocks (as of 7:30 a.m. CT publication)
Gapping Up– WPRT ARRY OPXT SPPI JASO ISR AMLN GNOM ALSK
Gapping Down — DG SBUX CEDC WAG
No indication —UNFI SHFL LAYN AMWD GIII JAZZ NFLX
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: AUTH GV CBLI ZLCS
Over $10 long looks w/ strong closes/actionable charts coming out of a range: FAF WTR PNW CLX AUXL PAAS
Weak close/weak chart/downside range break: NFG DOV MOH TECD
GoPauseGo: CDE ABX IAG GG AG AEM
Pocket Pullback (3-5 day orderly pullback from strong trend): ALXN DIS REGN
Up to 200d: AEP HRB
Up to 50d: COST ANV IAG
Up to 20d: SBUX HUM FAF CMCSA
Down to 20d AGNC
Down to 50d: DLB ARRS D CNP
Down to 200d: MSFT INTC
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).
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: AEM
I know I highlighted this one yesterday, but I still don’t like traditional breakout looks in any other non-Gold/Silver names right now. Truthfully, I don’t really trust gold/silver names that much, but the GDX recovered nicely yesterday afternoon and AEM is still my favorite chart in the group if it can get over $41.
2.) Small cap / Sub $10 long: GV
Some insider buying sparked a surge in this name late in the afternoon, and now it may have its sights set on 52 weeks highs from earlier in the month. Its a thinner name, and tricky to trade, so I’d be wary chasing early in the trading day. Relative volume will be key for any sort of sustained move today.
3.) Pullback long: DLB
After a big gap up from 37.50 to 45 early in the month, the stock consolidated around that level, before breaking down last week with the rest of the market. 3 straight sharp red candles has brought the stock back down to its 50d MA and close to its old high/resistance area at $40. Watching those two areas as pivots today in the name as potential reversal points.
4.) Traditional short: EQIX
Will be watching this name for a short under its 50d today, after some news out of NFLX that it will be starting its own content delivery network. This stock is extremely thin, and if it gaps too far down, will not be worth it. However, it has held up very well lately, and any sort of negative momentum could see the name fall quickly and catch up to some weaker peers. Honestly don’t know if the NFLX news is material relative to the name, but it may be enough to shake things up in the name to the downside.
The creation of this morning’s Early Bird Report was compiled while listening to the album Murmur