[Day] MLS … critical support

I need MLS to take down 16.37 hard … then it’s a rapid fall to the $16.20. Right now, we’re stuck.

MLS starting to consolidate between 16.55 and 16.45, which is pretty junk with about 40 mins to go. When this happens, it can either explode to the upside or downside. Support is starting to build strong at 16.40. Booo.

Where’d all these buyers come from? Last minute buyers trying to get in before the close. I’ll ignore them for now.

MLS topped at $17 at 14:23. The stock failed to bounce above $16.80 at 14:58 and downward trend has formed. My guess is buying has slowed in final hour, or day traders will be selling hard into the close…. just a guess. Support 16.38.

Short- 16.50
Stop- $16.80
Cover- $16.15

…i type too slow.

I finally got my dumb internet to work. Anyway, looks like the Dow, Nasdaq, and S&P have sustained profit-taking earlier in the day. I especially like the action in the SOX index (so far, the Nasdaq depends on these semicondutors). There was some much needed profit-taking, but the buy-the-dippers crowd immediately took the opportunity to pick up some shares. Keep averaging up this group of stocks and you’ll be good to go until September at least.

Stocks on my radar

• NVEC– steaming away! After breaking out on Thursday, the stock continues to move higher and higher. There are way more buy orders than sell orders at the moment.
• AEOS – the one retail stock that attracted me the most is up (ANF, CTRN, CHS are down). I was hoping to get a discount today. Shoot, it’s still rising, and I have 0 shares.
• TIE– so far, based on what I’ve noticed, TIE seems to do very well on Fridays. I’ll have to check that out later.
• ICLR– company has been doing all kinds of things to specifically affect the stock price. That’s kind of sketchy to me… if a company wants to raise their stock price they should do it by just being a good company.
• MLS- has bounced like crazy!!!! 16.35 is solid support
• The SOX stocks have rebounded today- BRCM, NETL etc.

Tomorrow I won’t be actively day trading. It’s options expiration day, so it’s probably better to stay out of the way. Anyway, I just have other things to take care of. I do have a few longs I want to swing trade, and if I can get them at a reasonable discount I’ll take them (retail stocks: AEOS). Yesterday I witnessed the most gap ups on the market than any other day (ie, CTRN, GME). Usually this is a bullish sign in a sector, so that’s where I’ll be swinging. I am also considering going long in some oil stocks since they are getting cheap; feels like it’s getting coiled up and ready to explode… all we need is some news to ignite it.

Anyway, here are some day trading ideas:

• Short BRCM, NETL, ATHS, AMD, RBAK- this is contingent of any signs of profit taking. The SOX index (aka, semiconductors) is heading deeper into short term overbought territory, and when the pullback does occur it’s best to day trade it than swing. I think the SOX will head to 460, but a pullback to 430 should occur first. That day just may be tomorrow now that MRVL and ATHS are being sold afterhours, and Dell had disappointing earnings… that should be enough to send longs into taking some off the table.
• Long MLS– stock was a victim of panic selling, and longs are treading cautiously adding positions slowly by slowly. Just make sure there is not too much overhead resistance, for instance, there are not a bunch of huge sell orders on the top.
• Go in the direction of CHINA– no not China the country, CHINA the stock. It just had a huge spike yesterday, and is now above $5. Go long or short, wherever the stock chooses to go.

Picture above is of Kakaako Waterfront park which is in downtown Honolulu. Picture was from our local paper the Honolulu Advertiser.