Intraday/Swing Plays

Dismal Tech News Pressures Stocks

Negative guidance from PeopleSoft Inc. (PSFT) and Qwest Communication's (Q) earnings restatement are weighing on stocks in pre-market activity, despite upbeat profit reports in the electronics retailing sector. Treasury prices are slightly lower and world markets are mixed.

The most interesting thing about yesterday's market was the number of tech stocks that broke out of week long to month long trading ranges. (CSCO, SUNW, EMC) Most of these stocks still do not have attractive long term patterns, but the current strength suggests a challenge of January highs. Investor sentiment is more of less neutral.

These are not recommendations:

RIMM - Buy

Pulling back towards support, RIMM is set to move upward from these levels. MACD is positive and price is above 30 day EMA
Support @ $25.20
Target @ $34.25

SUNW - Speculative Buy

Stock has bounced off a double bottom support area. Expect some resistance around $10.00
Support/Stop @ $8.50
Target @ $11.25



BRCD is looks poised to gap up again if the Naz turns around.today.
 
TODAY'S EXECUTIONS:

12:52:29 SBUX SLD 2000 23.44
12:46:33 ED SLD 800 41.96
12:46:28 ED SLD 1200 41.95
10:45:01 .PQODY BOT 40 1.60 (avg)


OPEN POSITIONS:

Short IBM 1000 106.61
Long BRCD 2000 26.27
Long WCOM 5000 6.59
Short NET 2000 23.72
Long PALM 5000 4.01
Long COHU 2000 28.23
Long DNA 2000 51.97
Long .PQODY 40 1.60

CLOSED P&L: $708.00 OPEN P&L: $3,230
TOTAL CLOSED P&L: $29,689
 
CPN looks like a possible long on a minor pullback. If CSCO is red tomorrow I'm going long at some point intraday for a large position. CSCO might take a week or two to get 2 points but I think it's poised for a run especially if the Naz has a rebound.
 
Long 1,000 CSCO @ 16.43

I wanted to own some since it's moving up after the close in case there's a pop after hours. I will scale into a larger position tomorrow and maybe tonight.
 
Markets Look To Open Higher

US equity index futures are pointing to a higher open amid limited equity and economic news this morning. US Treasuries are lower ahead of the ISM's non-manufacturing PMI report and world markets are mixed.

According to the Wall Street Journal, WorldCom Inc. (WCOM) may eliminate up to 10% of its workforce amid the continued slump in telecom spending. Separately, the company announced its MCI Communications unit (MCIT) will redeem $700 million in callable bonds as part of a debt reduction effort.

Plays to follow......
 
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