Wednesday, October 10, 2007

Trading Ideas: Q’s Up, VNDA Soared

Editor's Note: below are just some trading ideas flow from our latest Headlines.

"Cubes Speculator Bulletin"
October 08, 2007 @ 10:00 PM:
  • The overall trend is up and you better respect it.
  • A move to above $53.16 will confirm a test of the long-term resistant at the $53.50…
NewsDesk_qqqq_20071010

As you can see, QQQQ hit as high as $53.57 Wednesday afternoon immediately after Tuesday bullish broke out above the $53.16 level. The recent call option setup holds an amazing gain of +104% in just 4 day.

"Swing Trader Bulletin"
October 8, 2007:
  • Vanda Pharmaceuticals Inc (VNDA) pulled back to support at the previous bullish breakout point.
NewsDesk_vnda_20071010

Shares of VNDA – profiled on our "Swing Trader Bulletin" as a potential buy candidate – jumped another +11% Wednesday on the heel of Tuesday +8% gain. The set up gains about +20% in just 2 days.

Want more investing ideas? Check out Capital Essence's Newsletter Services - "best-of-web" technical analysis.
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技術前瞻：謹慎看漲觀點不變

Editor's note: this column was originally published on Capital Essence's CEM News on October 09, 2007. It's being republished as a bonus for the loyal readers. For more information about subscribing to CEM News, please click here.

這是Capital Essence對2007年10月10日 (週三) 的市場技術分析。
週二，聯儲9月18日公開市場會議記錄公佈之後，股市展開全面反彈，從而確認了我們的"看漲"觀點。
聯儲表示將來的行動將取決於經濟與股市的發展狀況。儘管如此，近期的經濟數據以及資本市場的行為都表明聯儲下次會議再次降息的可能性渺茫。聯儲公開 市場會議記錄同時指出通貨膨脹已經不像從前那樣會對經濟構成重大威脅。這對美元造成了一定的壓力，當日美元指數下跌0.39%。
dollar_20071009
美元指數昨天的交易表現使近期低點——77.66點受到考驗的可能性增大。我們說過，只要美元指數能守在77點之上，短期看漲的偏向仍將保持不變。
值得注意的是，在"Swing Trader Bulletin"文章中被列為潛在買進對象的Vanda Pharmaceuticals Inc (VNDA) 昨日獲得8%的可喜收益。此前，該公司總裁兼首席執行官發表了樂觀言論。技術面而言，該股已做好了考驗200日均線的準備。
來看主要股指：
spx_20071009
上面是標普500指數的短期日線圖。"振奮人心"的聯儲公開市場會議記錄將該指數推到了上週五創下的歷史高點的上方。值得注意的是昨天的交易量是低於平均水平的。這並不是十分看漲的信號。支撐位約為1540點。
dja_20071009
上面是道指的短期日線圖。和標普500指數類似，該指數已經實現突破，並以低成交量創下新高。同樣，這並不十分看漲。短期支撐位約為14000點。
總結：如前所述，昨天的縮量突破表明此次突破可能難以維繫。儘管如此，除非空頭成功將股價推至上週低點之下，否則多頭仍將佔據上風。

(本文作者：Michelle Mai)
注﹕Michelle Mai為Capital Essence(錢途集團)撰寫技術分析﹐並為包括市場趨勢在內的數份金融市場投資通訊的首席市場策略師。如欲每日盤前收到更多最新分析, 敬請訂閱。
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Bullish until proven otherwise

Editor's note: this column was originally published on Capital Essence's CEM News on October 09, 2007. It's being republished as a bonus for the loyal readers. For more information about subscribing to CEM News, please click here.
 
Good Morning. This is Capital Essence's "Market Outlook" (the technical analysis of financial markets) for Wednesday October 10, 2007.
Stocks rallied across the board Tuesday followed the release of the FOMC Minutes from the September 18th meeting and hence confirmed our "bullish bias" notion.
The Fed noted that future actions would depend on the economy and market developments. Although recent economic data and the behavior of the capital markets suggest that chances that the FED cut rates again in their next meeting is slim to none. The FOMC minutes also mentioned that inflation isn't a big threat as it used to be. And this had put some pressure on the greenback with the dollar index lost -0.39% for the day.
dollar_20071009
Today trading action had increased the chance for a test of recent low at 77.66. As mentioned, the short-term bullish bias remains intact as long as the dollar holds above the 77 level.
It worth notice that shares of Vanda Pharmaceuticals Inc (VNDA) – profiled on our "Swing Trader Bulletin" as a potential buy candidate – posted a remarkable +8% gain Tuesday after the President and CEO's upbeat remarks. Technically speaking, the stock is well positioned to test the 200-day moving average.
Let's take a look at the major indices:
spx_20071009
The S&P 500 Index (daily) chart above addresses a short-term time frame. The "encouraging" FOMC minutes had helped to push the index to above the life time high printed last Friday. It worth notice that today trading volume was below average. This is not very bullish. Support is about 1540.
dja_20071009
The Dow Jones Industrial Average (daily) chart above addresses a short-term time frame. Similar to the S&P 500, the blue-chips index had also broke out to a new high on low volume. Again, this is not very bullish. Short-term support is about 14000.
Bottom line: as noted above, today bullish breakout on low volume suggests that the breakout might not sustain. Though until or unless the bears manage to push prices to below last week's low, the bulls still have the upper hand.

Until next time, good luck!
(By: Michelle Mai for Capital Essence)
Note: Michelle Mai writes technical analysis for Capital Essence and is the editor of Capital Essence's "Market Outlook" newsletter. To receive the daily edition, please subscribe. It's now available at a monthly rate.
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