Market shrugged off late-day buying efforts to close mixed as investors maintained a rather tepid attitude about equities following Greenspan's testimony, despite encouraging economic data and relatively upbeat earnings reports..."All told, the economy seems to have entered 2005 expanding at a reasonably good pace, with inflation and inflation expectations well anchored," Greenspan said. "On the whole, financial markets appear to share this view." But the underlying sentiment remained rather cautious throughout the session... Meanwhile, investors embraced an unexpected 4.7% increase in Jan housing starts to a 2.159 mln annual rate (consensus 1.925 mln), a level not seen in nearly 21 years, while Jan Building Permits, which have consistently validated a continuously expanding housing sector, rose 1.7% to a record 2.105 mln annual rate (consensus 2.0 mln)... Jan industrial production came in flat (consensus +0.3%) after small downward revisions were made to gains in Nov and Dec, while capacity utilization fell off to 79% (consensus 79.3%), but were still below the 80% level which marks increased pricing pressures... On the earnings front, Coca-Cola (KO 43.25 +0.60) posted a 30% rise in Q4 profits while CMX and MCO also posted better than expected results... CTB and JNY were the only notable S&P components to miss forecasts... Computer storage (-2.5%) paced the way lower in technology on the heels of a disappointing Q4 sales outlook from Network Appliance (NTAP 31.72 -2.64) while profit taking in computer hardware (-0.8%) prevented the group from extending two straight days of solid gains... Semiconductor, financial, retail and health care were also influential leaders to the downside with weakness in drug stocks adding pressure to the latter... FDA officials met today to see if drug makers (i.e. PFE and MRK) should carry sterner warning labels on existing drugs or remove certain painkillers from the market altogether... Energy (+2.7%), however, was a standout today, taking advantage of higher oil prices as well as upgrades on Devon Energy (DVN 43.58 +1.46) and Transocean (RIG 48.64 +2.52)... Crude oil futures surged more than 2.0% to close at $48.33/bbl (+$1.07) despite selling off earlier following a stronger than expected oil report... Weekly crude oil inventories rose 2.1 mln barrels (consensus +1.0 mln) and gasoline inventories rose 4.9 mln barrels, significantly better than the 200K increase economists expected, while distillates fell 3.1 mln barrels (consensus -1.5 mln)... Materials stocks (+1.1%) also surged amid M&A speculation within the steel group (+5.8%) and increased surcharges at AK Steel (AKS 17.33 +1.06) while homebuilding (+1.5%), despite higher bond yields, benefited from record housing data... Treasuries, however, closed lower after Greenspan noted that the Fed does not understand why the longer maturity yields have been falling amid continued rate-tightening... "There is some hint that perhaps the bond market has got it wrong and yields shouldn't be this low. It is certainly bearish for the bond market" he said... The benchmark 10-year note finished down 14 ticks to yield 4.15%... Before the open, unconfirmed reports of an explosion near a nuclear power plant in Iran riveted the market, but a timely rebuttal from the U.S. State Dept. redirected investors attention to Greenspan's testimony and the bulk of respectable data...NYSE Adv/Dec 1690/1636...NASDAQ Adv/Dec 1602/1526.
1.
GSF - Globalsantafe
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 37.66
|
2.
WFMI - Whole Foods Market
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 102.14
|
3.
INCX - Interchange Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 22.20
|
4.
CME - Chicago Mer
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 216.83
|
5.
BTU - Peabody Energy
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 92.70
|
6.
TSO - Tesoro Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 34.67
|
7.
CMC - Commercial Metals
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 32.50
|
8.
MXT - Metris Cos
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 12.62
|
9.
MEE - Massey Energy
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 43.16
|
10.
NUE - Nucor
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 60.15
|
11.
MHR - Magnum Hunter
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 15.42
|
12.
DVN - Devon Energy
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 43.74
|
13.
APA - Apache Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 59.67
|
14.
TOY - Toys R Us
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 22.40
|
15.
WFT - Weatherford
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 58.78
|
16.
UCL - Unocal
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 51.42
|
17.
CVX - ChevronTexaco
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 59.60
|
18.
TXT - Textron
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 77.15
|
19.
BHI - Baker Hughes
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 47.50
Earnings to be announced before the open. If the stock gaps down and then breaks the 15min low, short it.
|
20.
TDW - Tidewater
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 41.50
|
21.
BP - BP
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 02-17 |
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 63.27
|
==============================
EOD = End of day.
LOD = Low of day.
PDC = Previous Day's Close.
S/R = Support/Resistance.
==============================
DISCLAIMER: Trading in securities may not be suitable for all individuals.
Consult your broker or other professional to determine your suitability.
The discussions provided by Day Trading It are for educational purposes
only and should not be taken as a recommendation to buy or sell the
referenced security. Past performance is not indicative of future results.
Please keep in mind that these picks are chosen up to 12 hours before the markets open. During this time conditions, which will effect entry and exit on the above listed ideas, may change.
