Friday’s Top Stocks From TradersWire
Trading will be
quiet tomorrow, especially in the afternoon, as
traders leave for the three-day weekend. That doesn’t mean that there won’t be
anything going on at all, but it’s possible that setups may be harder to find.
The bias going into this holiday is up–I honestly thought that because we were in
such an overbought condition that the effect would not be as pronounced. I
should have listened to
Kevin Haggerty–he just about always gets it right. That said, here are some
ideas for Friday:
TiVo
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TIVO |
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beat by 0.10 but guided lower for 2006. Possible scenario: stock gaps up
on the good earnings as investors place their orders pre-open but the stock
sells off as the market ‘suddenly’ realizes that the guidance is what counts.
The high could be in the first half hour. No guarantees, but let’s watch
it. Also, I really don’t like the looks of those last two daily bars.
Tech Data
(
TECD |
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missed and also guided lower. In a conference call after the close, the
company said that Hewlett Packard represented 28% of sales, but that the
business outlook remains strong. Demand in Europe was weaker, though. This stock
will gap down tomorrow. The key is how much. A very large gap can sometimes be
bought for a quick reaction bounce. Smaller gaps can do that too, in which case
a gap fill can be a good short area. I’m not sure how the market will react to
finding out that one company is almost a third of sales. In any case,
we’ll watch this one as well.
Cardinal Health
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CAH |
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PowerRating) looks like a nice orderly pullback in an uptrend. A buy above
Thursday’s high stands at least half a chance.
And finally, Valero
(
VLO |
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PowerRating) caught my
eye because it completed a head and shoulders and traded up to–and through–the
neckline…but on lower volume. Volume is the gas pedal–this one may be
telling you it’s running out.
Brice
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