Thursday July 15, 2004

It appeared as though we might be have a key reversal, however, heavy selling in INTC drove the stock and the market to its lows at the end of the day. After the close, AAPL and SNDK came out with good numbers which may get the Nasdaq to reverse at the open. We should have good volatility again today with a heavy day of earnings. C, WB, FITB, NOK, PEP, and UNH all reported already, and IBM is after the close.
We never went through the 1106 low (S&P Sept) from 7/12, so that should be good support today. The 8 day avg is now 1115.16 and the 55 day avg is 1117.59, so we could have a tight range again today. The economic news was all good with the PPI and Business inventories less than expected, and the NY Empire index, better than expected.
KMRT continue to perform well and should be a good buy on dips today.
The biotechs also had a very strong day with GENZ leading the way. If the tech stocks rebound, however, you could see the biotechs sell off.
Oil was incredibly strong yesterday, which was one of the causes for the sell off in stocks. So far it is down $.30, if it sells off below $40, we could have a good rally in stocks and the dollar.

Here are some of the news related trading ideas for today:
Nokia cut to Perform from Outperform at Loop Capital
Amazon.com started with a Mkt Perform at FBR
Peabody Energy misses, guides Q3 EPS below consensus, Y04 in line
Soundview comments on Infrastructure Software space; NETE is top pick (7.74 )
Cypress Semi reports in line for Q2; comments on industry and co future
Johnson & Johnson gets FDA approval for Levaquin for multi-drug resistant form of Streptococcus Pneumonia in C.A.P.
CSFB upgrades ADP and PAYX
Check Point Sftwr cut to Hold at Jefferies
Watch for the usual suspects, including RFMD, TQNT, SWKS, TXN, and MOT, to trade down following the profit warning from Nokia
Commerce Banc cut to Underweight from Equal Weight at Morgan Stanley
Sepracor announces FDA acceptance of Estorra

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