Dow + 53.49 I Nasdaq + 16.93 I S&P 500 + 7.00
Market Wrap
(Briefing):
Concerns on Thursday about the weakening dollar, the spike in commodity prices, and the jump in long-term rates were set aside Friday. Instead market participants shifted their focus to the better-than-expected earnings reports from Oracle (ORCL 21.98, +0.94) and Nike (NKE 57.26, -1.06) and drove the major indices higher into the weekend.
The positive finish was icing on the cake for market bulls who enjoyed healthy gains in the wake of the FOMC's decision on Tuesday to cut both the fed funds and discount rates by 50 basis points to 4.75% and 5.25%, respectively.
To be exact the Dow, Nasdaq, S&P 500, S&P 400, and Russell 2000 surged 2.8%, 2.7%, 2.8%, 2.3%, and 3.8% for the week.
Friday's showing was accented by heavy volume that was the byproduct of some index rebalancing and the quarterly expiration of stock options, index options, index futures and single stock futures.
The tech sector (+0.8%) provided influential leadership throughout the day with Oracle's reassuring report and outlook sparking the buying interest.
Nike's earnings news offered some early support for the consumer discretionary sector (+0.1%), but ultimately, the sector trailed Friday's action as weakness in a number of housing-related groups and a 21% decline in consumer electronics company Harman Intl. (HAR 85.00, -27.25) served as limiting factors.
Harman plunged on a Wall Street Journal report that Kohlberg Kravis Roberts and the private equity arm of Goldman Sachs were balking at following through with their $8.0 billion acquisition of the company. Harman confirmed late in the day that the aforementioned parties notified the company of their decision not to go through with the acquisition on the grounds that a material adverse change had occurred in the business.
The broader market's gains were pared in the afternoon trade, but the major indices still managed to finish comfortably above the unchanged mark as relative strength in the energy (+0.6%), telecom (+1.3%), materials (+0.7%) and health care (+0.6%) sectors provided the winning edge. The financial sector (+0.2%) ended the day higher, but underperformed due to a weak banking group which got clipped after Merrill Lynch downgraded several issues.
Trade system guidelines
(edited):
Only available to Newsletter Subscribers.
1.
EXM - Excel Maritime Carriers Ltd
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-24-07 |
|
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 50.74
|
2.
FSLR - First Solar Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-24-07 |
|
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 112.77
|
3.
CELG - Celgene Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-24-07 |
|
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 70.71
|
PAAS - Pan American Silver Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
|
|
Long |
Above 15 high |
Sell 1/2 once risk covered |
Below LOD at time of setup |
|
|
* did not setup
|
FRO - Frontline Ltd
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-21-07 |
|
Long |
48.71 |
Reached (48.99) |
Below 48.84 |
up to + $1.33 per share (50.04) |
|
|
GSF - GlobalSantaFe Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-21-07 |
|
Long |
77.05 |
78.10 |
Below 75.86 |
up to + 59 cents per share (77.64) |
|
|
SLB - Schlumberger
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-19-07 |
|
Long |
106.61 |
108.20 |
Below 106.20 |
up to + $2.14 per share (108.75) |
|
|
AMT - American Tower Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-18-07 |
|
Long |
41.10 |
Reached (42.06) |
Below 41.87 |
up to + $1.51 per share (42.61) |
|
|
SIGM - Sigma Designs Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-18-07 |
|
Long |
47.70 |
Reached (48.26) |
Below 49.54 |
up to + $4.85 per share (52.55) |
|
|
* Key
==============================
HOT = High of Trade.
LOT = Low of Trade.
HOD = High of day.
LOD = Low of day.
EOD = End 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.
