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Bulls on Wall Street: Stop Guessing. Start Trading.
 
 
 
 Hey folks. Futures gapping down pretty nicely -1% across the board. Europe getting taken down also wiht -1% across the board.E xpect a sell off into the morning. Whether it continues is anyones guess. The price action will tell us. The GDP report was slightly weaker than expected. I am not of certain that really mattes as I dont know of a single person that thinks or feels this economy is growing at 3%.  GDP has a hundred variables. We've seen it fly up just from inventory restocking before so take it all with a grain of salt. the price action will tell us if this dip gets worse.  As you know we are still in bear market trading.  Cash levels of 50% are best.  Daytrading, scalps are less riskier in this environment. 
 
Key levels to watch $spy 108-108.37 there are multiple levels of support from spy 108 down to 104 so it wont be an easy path to break the market down.
 
Beware of reversal today as often these days serve as a catalyst for a market takedown in the morning and then aggressive buying steps in later.
 
The watchlist from the videos the other day is still intact.  Remember in the focus list stocks to look for low volume orderly pullbacks to support.  
 
2 new additions  Both Breakout pullbacks
 
TER is an earnings breakout: earnings breakouts can trigger multimonth runs if the results beat expecations and the chart is ripe for a run.
 
SCMR (low vol pullback to 21.00 area triggers a buy. 20.30 stop )
TER   (low vol pullback to 10.50 triggers a guy ) stop at 10.25 if ur trading fast 9.95 if swinging
 
 
 
Teradyne (TER) reported results Wednesday night that were explosive. Earnings of $.69 beat analyst estimates by $.22 or over 40% for the 2nd straight quarter. Revenue was up an amazing 38% sequentially. For Q3 they forecast earnings of over $.80 easily beating estimates of only $.46. TER continues to benefit from a fast expanding market in wireless (read smartphones) and smart power management.
 
2010 estimates now range around $2.3 leaving the stock at 4.8x eps. With over $2 in net cash, TER has an Enterprise Value of just $9 or a meager sub 4x eps. Would it be crazy for the valuation to triple to 12?

Summary from Q2 report:

  • Q2’10 revenue of $455 million, up 38% from Q1’10 and up 168% from Q2’09
  • Q2’10 diluted non-GAAP income of $0.69 per share, up from non-GAAP income of $0.33 per share in Q1’10 and up from a non-GAAP loss of $0.21 per share in Q2’09; Q2’10 diluted GAAP income of $0.55 per share
  • Q3’10 guidance: Revenue of $490 million to $520 million: Diluted non-GAAP income of $0.75 to $0.83 per share; Diluted GAAP income of $0.60 to $0.67 per share

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