Dow - 61.13 I Nasdaq - 3.27 I S&P 500 - 8.02
Market Wrap
(Briefing):
The stock market made an effort Monday to extend last week's big gains. It scored some success early on, but buyers eventually backed off and the major indices closed the session with modest losses.
The technology sector (+0.3%) provided the early leadership. Brokerage upgrades of Motorola (MOT 18.05, +0.16) and EMC Corp. (EMC 20.51, +1.48), and the outperformance of Microsoft (MSFT 29.08, +0.43) ahead of tonight's release of the popular "Halo 3" videogame and amid media reports that it is interested in taking a stake in social-networking startup Facebook, helped drive the upside.
The tech sector eventually lost some steam as leading names saw larger gains get pared in conjunction with a broader market pullback that followed after news hit the wires at 11:00 ET that the UAW launched a nationwide strike at General Motors (GM 34.74, -0.20) plants for the first time in 37 years.
The GM-UAW divide was the story of the session. Although prior reports had indicated substantive progress had been made in their negotiations, a newsconference held by the UAW to discuss the strike cast serious doubt on those reports.
GM, which was up 3.9% early in the session on the expectation an agreement would be reached ahead of an 11:00 ET strike deadline, finished the day down 0.6%.
Not surprisingly, the auto parts makers comprised a pocket of weakness in the broader market. Homebuilders and airlines did, too. The former traded lower after Standard Pacific (SPF 7.05, -1.05) said it eliminated its quarterly dividend as part of a plan to reduce debt.
Falling crude prices (-$1.03 to $80.59) weren't much help to the airlines, which got clipped after AMR Corp. (AMR 20.77, -3.49) provided disappointing revenue guidance for the third quarter. The dip in crude prices came after a storm threat in the Gulf of Mexico over the weekend was averted.
Overall, the financial sector (-1.2%) was the biggest drag on the market following a Reuters report Deutsche Bank (DB 126.34, -2.94) might have to take a big writedown of its leveraged loan commitments.
The Treasury market was essentially flat ahead of some key economic data Tuesday that includes the Existing Home Sales and Consumer Confidence reports. The dollar, meanwhile, continued to languish, showing no real improvement against a basket of other major world currencies.
Trade system guidelines
(edited):
Only available to Newsletter Subscribers.
1.
NBL - Noble Energy Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-25-07 |
|
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 68.99
|
2.
RIO - Companhia Vale do Rio Doce
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-25-07 |
|
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 31.82
|
3.
GRMN - Garmin Ltd
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-25-07 |
|
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 115.10
|
EXM - Excel Maritime Carriers Ltd
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-24-07 |
|
Long |
53.67 |
Reached (55.41) |
Below 53.67 |
up to + $1.73 per share (55.40) |
|
|
FSLR - First Solar Inc
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-24-07 |
09-24-07 |
Long |
116.12 |
119.88 |
Closed Below 112.08 |
up to -$4.18 per share (117.48 HOT) |
|
|
CELG - Celgene Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-24-07 |
|
Long |
70.78 |
Reached (71.37) |
Below 70.78 |
up to + 1.45 per share (72.23) |
|
* 09-24-07 - stock gapped down
|
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 49.30 |
up to + $1.97 per share (50.68) |
|
|
GSF - GlobalSantaFe Corp
| Entry Date |
Exit Date |
Position |
Entry Price |
Target Price |
Stop Price |
Max P/L |
| 09-21-07 |
09-24-07 |
Long |
77.05 |
78.10 |
Closed Below 75.86 |
up to -$1.26 per share (77.64 HOT) |
|
|
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 42.08 |
up to + $2.10 per share (43.20) |
|
|
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 49.55 |
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.
