Early Bird Report 6-6-12
Early Bird Report 6-6-12
Interesting pre-market session here today… the SPY’s were gapping up quite a bit on Asian strength, hopes about some support from the ECB., and rumors of QE3. SPY’s got as high as 130.67, but have since sold off some after rates in Europe were left unchanged. Will likely be a difficult tape to navigate from a daytrading standpoint. On one hand, you’ll have a scenario where dip buyers may chase so that they haven’t “missed” a near term bottom. On the other hand, the sellers that have been so dominant lately will look at this bounce as a great place to sell/short into. Outside of pre-market highs of 130.67, we have the 10d MA looming above now around the 131 area, and 5/31 close at 131.47, and finally the 20d at 132.03 as resistance areas. From here, I’ll be wary of a gap fill to the downside, and will likely wait out the opening range to nibble long, while watching for sector strength indicators to help find pockets of opportunity.
News/Earnings Stocks (as of 7:30 a.m. CT publication)
Gapping Up– ULTA HD LEE CSTR IRM SVNT CHK ASTI ACOM DG HOV
Gapping Down — MFRM MIND FCEL TPX BF.B
No indication — GWRE CYBX MTN
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: BLIN MBLX ECYT AMRS CDXS SNTS JAG
Over $10 long looks w/ strong closes/actionable charts coming out of a range: AKRX CME CBOE OCN IMGN PCYC SPPI RE MRH CVH CNQR
Weak close/weak chart/downside range break: FAST GILD PCG TZOO FDX
Pocket Pullback (3-5 day orderly pullback from strong trend/move): TGT LUV LCC
Up to 200d: SLM CVH
Up to 50d: N AZO AG HBI
Up to 20d: SNDK LH BPL OXY AGN VECO CBS MGM CBST VR BIIB O
Down to 20d
Down to 50d: GEO PEP
Down to 200d: MSFT
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: RE
Nice looking daily chart here in this reinsurance name, consolidating up here around its 20d and not too far from mid May 52 week highs. Watching for a move above the 102 level if the market can catch a strong bid.
2.) Small cap / Sub $10 long: AMRS
Big time volume behind this pop yesterday in this name, as it ran up past its 50d MA for the first time since last October. An inside day is always a possibility after a move like that, so we’ll be wary. Ideally, we get a bit of a snapback on the open to nibble into and watch for some follow through volume to come in.
3.) Pullback short: OXY
Has had a nice three-day bounce up to its 20d MA. Last time it touched up to that spot was last week and it was rejected and followed with a 6point drop. Will watch how the stock acts around the 81.50 area tomorrow on the open, and if it fails to clear and the market turns sour, I’ll look at this as a shorting opportunity.
4.) Traditional short: GILD
Weak close in this name yesterday, it failed to participate with the market rally toward the end of the day and couldn’t get past 48.60. Watching below 48.25 today in a weak market here to see if it can continue to try and fill the April gap down to the 47 area. Wouldn’t want to be short if it finds its way above 49.20.
The creation of this morning’s Early Bird Report was compiled while listening to John Coltraine