Tomorrow’s open will likely be a continuation of today’s action thanks to CSCO’s less than impressive results.. They weren’t bad, just not comforting that the market is moving in the right direction. Now we hear ‘double dip’, ‘deflation’, etc. in every headline and from every talking head on TV.
The Plan:
Tomorrow morning I’ll likely sell my SPY puts and pocket some profits. Then I’ll wait – have some breakfast, maybe go to the pool, etc. Around lunch time, I’ll jump back in the saddle and look for the oversolds and stocks sitting on support. If the market holds up, this might be a good time to swing or scalp long into the afternoon. We’ll need to confirm the market stability however. If the market is still looking heavy, I might load up on shorts again.
Here are a few stocks I’m watching for possible support bounces over the next two days:
CRUS – All of the technology stocks were taken down hard today and will likely gap down in the morning. However, this company rocks and I will look to find an entry along the second trendline support – 18.20 range. Chart looks like a knife about to fall, so it needs market support and AAPL support soon or I won’t enter.
ARMH – there are a lot of gaps in this chart, but I’ll possibly be interested if it gets down around the SMA50 area.
SLW – Gold is interesting again. One of my favorites, SLW, will be on my watch list tomorrow. GMO is worth a watch, as well, as it sits on SMA200. It’s used SMA200
NLST is still very interesting. They reported earnings this afternoon and they appeared pretty darn good to me. If I’m interpreting the report correctly, this stock could boom in the afternoon.. being a tech stock, I figure it will be down early, however.
SONS might be interesting around 3. Notice the volume accumulation on the daily chart over the last few months. If the market recovers by Friday, this could leg back up. Again, looking for pullback first.
That’s all for now.. see you in the boom factory and be prepared for the gap down. Watching gold, the big pullback in solars and how the SPX trades an hour after open.
