Smackdown!
The overall trend of the day remains down, and the Nasdaq
futures have dipped below 3000 and rebounded. Will it hold? Only time will
tell.
The Nasdaq Composite continues to test its lows and set a
series of lower highs. Keep an eye on the downtrending channels of the
indices.
As for tomorrow, the whole world seems to have its eyes
on JDSU’s earnings. Does it matter how they perform? No. What matters is how
they are interpreted. Watch the afterhours trading in JDSU for insight into
tomorrow’s action.
All of the individual stocks that I planned to look at
today have already moved, such as Ariba.
For the rest of the day, watch for short opportunities in
many of the most volatile names. I will be compiling a watch list of the
following active names, which are likely to trend with the broader market:
Ariba
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ARBA |
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Cisco
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CSCO |
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JDS Uniphase
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JDSU |
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exaggerated moves in the last hour.
PMC Sierra
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PMCS |
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Sun Microsystems
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PMCS |
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Sycamore
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SCMR |
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SDL
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SDLI |
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Brocade
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BRCD |
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Broadcom
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BRCM |
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Juniper
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JNOR |
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Itwo
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ITWO |
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Checkpoint
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CHKP |
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Emulex
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EMLX |
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Veritas
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VRTS |
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If you are looking for more shorts, look through the
names in the Netoworking Index, the NWX, as it is down another 5%.
If you plan to take any short positions, set alerts on
the Nasdaq futures near 3000, and on the S&Ps at 1350. You should also
have alerts on the Nasdaq Composite near 3000 and on the Dow near 10200. I
like to set alerts every 100 points on all indices as well. These tend to act
as key pivot points.
For example, I have been short S&Ps throughout the
day (I have now covered), and when the Nasdaq futures hit 3000, the S&Ps
bounced. These are things to watch for.