Texas Instruments (TXN): Merril issues cautious comments on the stock going forward. The Semiconductor sector has been a market leader to the UPSIDE for over a week even as the market got hit with strong selling. Look for buying opportunities in TXN. Brandon
But it will be interesting to see how the market reacts to this: http://cbs.marketwatch.com/news/story.asp?guid={703C79CF-0F9A-4000-8EB1-C63727506676}&siteid=mktw "Qwest said it would miss the Aug. 14 deadline set by the SEC for companies to certify the accuracy of their financial statements. The SEC is investigating Qwest's fiber-optic capacity swaps with Global Crossing, Enron and others in 2000 and 2001."
I have had a few PMs from people asking what has happened to the news plays, "are they not working?" etc, so I just wanted to post the ones we watched from Friday. It was nothing special, we watched four, two setup for some average sized gains. The news setups are always there, though certainly there are some times that they are better overall then others. I find that when there is nothing to really talk about the news stocks can do very well since the media is quick to jump on a story, also during earnings season etc. I try to present a number of ways on the board that people can make money, and just do that with threads on different subjects, thus I have had the "whats working now" thread, "news" thread and the gaps thread I am currently keeping active. I try to just present the ideas and follow up with them long enough that people can gain an understanding of the method and then move on. Sometimes I think that as a "vendor" I need to be careful not to wear out my welcome with people etc. Anyway, here was the news from Friday. Again, overall we have had a lot to talk about in the market, so there have not been a ton of them, and none that I can recall over the last several weeks that produced anything huge, but they do give a few nice setups a week and its consistent. If I find anything worthwhile tomorrow I will post it here in the morning. Brandon Checkfree Corporation (CKFR): JP Morgan has iniciated coverage at "underwieght". The weekly chart has been relatively strong and appears to be trying for a higher low. Look for buying opportunities in CKFR. General Electric (GE): Lehman downgraded the stock to "equal wieght". The stock is at an area of weekly support. Look for buying opportunities in GE. Lowe's Companies (LOW): The company has announced that it sees its earnings coming in at the upper end of analysts expectations. The stock has rallied strongly over the last several days and has become overbought. In addition, there is a potential head and shoulders pattern forming on the daily chart. Look for opportunities to sell short shares of LOW. Manugistics (MANU). USB has downgraded the stock to "hold". Over the last several weeks MANU has been trading in a range, which often gives a stock a chance to recouperate from a large move. Look for buying opportunities in MANU. All of todays trades are potential daytrading opportunities. LOW has the potential to be held a few days as a swingtrade as well.
A lot of amatures and novices get hurt trying to trade based upon assumtions on the news. For example this morning International Paper announced that revenues had fallen sharply. To many this seems like a very obvious reason to short the stock, however more sophisticated traders realize that what is obvious is not always right. Today when the stock gapped down slightly at the open many traders continued to short behind the rally cry of "The news is bad". They took action based upon their perception, but did not look at market reality. International paper had been selling off for several days and in fact opened at a nice area of daily support and intraday support at the 200ma on the 1 minute chart. After selling for a few minutes the stock continued higher and has provided very nice gains for those who are willing to trade based upon what is happening, not what they think should happen. When the stock showed its upside bias by trading above the opening high of 38.35 long traders where initiiated. As the stock came into the resistence area of the 200 period moving average on the five minute chart around 38.80 profits where taken. IP provides a very nice example of profiting using the principles and ideas presented on this thread. Brandon