These 4 stocks are poised to move

Some great trades Tuesday were
Genentech
(
DNA |
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PowerRating), General Motors
(
GM |
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PowerRating),  and Refco
(
RFX |
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PowerRating).
Also, if you remember my article from yesterday, I was also looking for a bounce
in Southwestern Energy
(
SWN |
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PowerRating) and Chesapeake Energy
(
CHK |
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PowerRating). Both of these
trades showed up on my alerts as return to  day highs and proved to be
successful trades.

DNA had positive earnings Monday after the close and was
on my watch list. DNA opened at $86.85, up $5.35. My first instinct was to sell
it and look for a small retracement to Monday’s close. There was a large offer
at $87 so I felt that I had enough resistance to go short. If DNA  failed
to sell off I would be going long at the $87 level. DNA was extremely choppy the
first 15 minutes and I played both sides of the market with minimal success.
Once DNA failed to rally and break the day high of $87.10, I looked for an
opportunity to sell the day low at 86.25. I  found my opportunity to go
short at 86.40 and added into my position at $86 when a large seller appeared on
the NYSE openbook as well as on the inside quote. When DNA broke the $85.90 the
specialist lowered his bid down to $85.50 and I exited at market to cover my
short. I exited at market because I knew the specialist was going to print down
and I wanted to lock in my profits. I just didn’t know how far he was going to
print down. Luckily he printed $85.50 and I was flat because he printed up
immediately after to $85.65.

Refco (RFX) was a stock that I traded very actively
Tuesday and I am looking to trade today as well. Unfortunately, Refco was
halted and did not start trading until 2:45 PM  EST. RFX was halted due to
a pending investigation from the SEC. RFX opened at Monday’s low of $15.60.
There was an extremely large offer at $15.61 and because of the negative news I
immediately looked for an opportunity to go short. By identifying large sellers
in the book as  well as in the tape I entered into RFX a number of times to
the downside. Since RFX was down over 60% over the past few days I would
continually lock in my profits and look for another entry point to go short. RFX
seemed to find support at $13.00 so when large buyers began appearing in the
market I felt I had enough support and confirmation to go long and buy the
bounce. In a highly volatile stock you have to lock in your profits and look to
get in again because you never know when that large buyer or seller will come in
and force the specialist to  widen his market.

General Motors has been on my watch list for a few days
due to the negative news on Delphi
(
DPH |
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Chart |
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PowerRating) around mid-morning my newsreader
came out with some positive news. Look below at the chart on how I traded GM
during the course of an hour.

One stock I will definitely be watching Wednesday is
Advanced Micro Devices Inc
(
AMD |
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Chart |
News |
PowerRating). AMD posted net profit way above Wall
Street’s expectations, fueled by strong demand for its computer chips. Look for
it to be extremely active and to break through previous day highs. AMD 
closed at 23.29 but was trading as high as 23.50 in after hours trading. 
Also keep an eye on GM, RFX, and DNA.