Day Trading Thoughts For Wed. Apr. 22

Discussion in 'Trading' started by erikrkolodny, Apr 22, 2009.

  1. erikrkolodny

    erikrkolodny ET Sponsor

    Without a doubt- certainly in the immediate-term- this is an entirely different trading market that we are involved with. Look no further than the last two days as evidence of that. On Monday, the financial stocks were absolutely drubbed in their sector percentage decline in several weeks. Yesterday morning, pre-open ZION and BK both reported atrocious earnings. ZION was particularly notable as it fell a stunning 40% plus from its high on Friday to its low this morning. But a peculiar thing happened on the way to disasterville: selling pressure just was not there. The futures were never really weak all morning yesterday and an attempted early sell-off was meted by weak volume. So, when the selling pressure dried up, a vacuum was created in which shorts who made a lot of money very fast decided to take their money and run. This in turn brought out some momentum players and you saw the likes of STT rallying from down a couple to finish up 5. Whether one is skeptical about stress tests or any other form of government intervention much less whether we are in a recovery, do not doubt one thing if you are a day trader: trade what you see. So many traders cannot understand why an STT did what it did and really, does anybody truly know with 100% certainty? But there is something with 100% certainty that is true: if you trade with your heart and your brain rather than ostensibly going with the flow when there is a steamroll of momentum as occurred in the BK and STT type plays of the world yesterday, you will not be around in this business very long.

    Markets in Asia were mixed overnight with Tokyo up slightly but Hong Kong down 2.5% plus. European bourses are quiet, but trending lower after trading higher earlier. Futures are being dragged down by the massive MS miss. This will set the tone almost all day from Wall Street; look for a downside day (albeit not a horrible one), but it is a good day trader’s market for selected stocks. Use MS and WFC as your benchmarks for the financials as well as the market; if WFC in particular rallies after the open, it will be a flashing light that the sell-off will be meted.



    Reiterating-
    Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea.
    If the whole story is not there -
    If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-



    Good- The following stocks have good news and/or a strong technical pattern

    SNDK- good earnings

    YHOO- good earnings

    CHRW- beat slightly, but traded sharply higher last night after-hours

    GILD- good earnings

    DDRX- closed near high after great earnings

    TCK- closed near high after debt restructuring

    FRZ- closed near high of day

    QLGC- rose sharply on takeover rumors yesterday; may reverse today if nothing comes to fruition

    ALXN, MEDX- mentioned on “Fast Money” last night

    LNC- closed on high of day

    USB, STT, BAC, JPM, STI, PNC- all closed near highs

    PFCB- positive earnings

    BA- good earnings

    TROW- good earnings

    T- good earnings

    IR- good earnings

    MCD- beat earnings slightly

    WFC- beat earnings, but may be dragged down by MS


    Bad-The following stocks have bad news and/or a weak technical pattern

    COF- bad earnings; AXP, DFS may move in sympathy

    NSC- poor earnings

    TEX- poor earnings

    ILMN- bad earnings

    PXP- doing massive share offering

    JAH- poor earnings

    VNO-share offering; all REIT’s (particularly SPG, EQR) rose sharply into close yesterday as well

    DOV- bad earnings

    WLP- bad earnings

    ABFS- bad earnings

    GSK- bad earnings

    LII- bad earnings

    PPDI- bad earnings

    FCX- missed earnings

    GNTX- poor earnings

    MS- atrocious earnings




    Earnings:

    WED APR 22 BEFORE
    ABFS APD ATI
    BA CAL CFR
    DOV ECA EGN
    ELN FCX FMBI
    GENZ GNTX GSK
    IR KMB LII
    MCD MO MS
    NITE NOC PBG
    PDS PFCB PFS
    R SNA STJ
    SY T TDY
    TIN TNB TROW

    WAB WFC WIT
    WLP WWW
    WED APR 22 AFTER
    AAPL AB ACL
    ADS AF AFFX

    ASIA AXYS BCR

    CMG CVA DOX
    EBAY EFX EQIX
    FFIV FIC GGG
    HUBG ISIL KNX
    LEG LHO LOGI
    NE NUVA NVLS
    PTP PTV QCOM
    RHI RJF SLM

    SNV STLD SUSQ

    THRX TMK TSCO

    VMW WGOV WOOF

    XLNX YUM

    Good luck today.


    Erik R. Kolodny