Daytraders, here are the stocks I’m targeting

  • October 25, 2005
  • Michael Kestler

I am looking for Texas
Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) to be an active trader on Tuesday. TXN
announced earnings after the close. The results came in with 3rd quarter
earnings at $638 million, or 38 cents a share. This compares with $563 million,
or 32 cents a share a year earlier.

The Street was expecting earnings around 41 cents a share. In the aftermarket
Monday evening, the stock was crossed down a dollar from the NYSE close.

TXN traded in a tight range today with the high being at $31.00 and the low at
$30.15. TSN rallied at the end of the day to $31.00. The close was at 30.92. If
you look at a daily chart you can see the TXN 200-period simple moving average
is at $28.00. Depending on where TXN opens up in the morning, I would first look
for TXN to break previous day lows as well as the support level through $29.00.
Look for TXN to then gravitate towards the 200-period SMA. If for some reason
TXN opens below the 200 day, then look for a possible bounce. I will also be
looking at
(
CD |
Quote |
Chart |
News |
PowerRating),
(
XOM |
Quote |
Chart |
News |
PowerRating), and
(
CSC |
Quote |
Chart |
News |
PowerRating) to be viable traders.

A series of stocks that came up on my scanner today were in the energy sector.
Stocks like Marathon Oil
(
MRO |
Quote |
Chart |
News |
PowerRating), Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating), Sunoco
(
SUN |
Quote |
Chart |
News |
PowerRating),
and Exxon
(
XOM |
Quote |
Chart |
News |
PowerRating).

They came up using a scan used by several traders in my trading group. We were
aware that the signals were especially strong when several or more stocks in the
sector are signaling at the same time.

I took the time to trade SUN and XOM when they reappeared on my scanner as new
“day highs.” Each time I buy stopped the old high, the buy stop would be
triggered and I would take a quick .10 to .15 cent profit.

This concept works best with large cap, highly liquid stocks when the sector is
in a trending mode. All in all not a bad day for the day after options
expiration. I will also be looking at CD, XOM, and CSC to be viable traders in
addition to the TXN I previously mentioned.

Mike Kestler

Please e-mail with any questions
you might have at

mkestler@evotrading.com

Michael Kestler is a
full-time professional trader and managing partner for Evolution Capital LLC., a
proprietary trading firm. Mr. Kestler specializes in intraday trading of NYSE
listed stocks. Before founding Evolution Capital LLC., Michael began his career
on the floor of the CBOE. Mr. Kestler was previously a Mid-Cap and Nasdaq Market
Maker. www.evotrading.com

 

 

 

 

 

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