FRI. JUL. 25 THOUGHTS

The ‘watch list’ is a staple of most traders. Arguably the most common question asked here is: “how do you form your watch list?” There are generally three types of stocks that go on this list. First, the list is especially prescient during earnings season. Every stock that has a 90-day average of 1,000,000 shares traded per day along with a range of at least 20% price movement for the year is included on our earnings list which in turn goes onto the watch list. Second, any stock with major news- no matter the size of the company-is included. For instance, if a stock has a ‘phase III’ approval FDA or a major oil find, the stock is automatically added to the watch list. Finally, a scan is run every night of every stock on the NYSE, AMEX, and NASDAQ which traded at least 1,000,000 shares, moved up or down at least 5%, and closed at or near the day’s high or low. By doing this homework, a list of stocks is procured based on a wide range of news and price action with volatility ostensibly assured due to wild action as a result of reactions to news and/or further movement based on strong moves the previous day.

Markets overnight were down in Asia and Europe on the heel of the tumble state-side yesterday. Futures higher this morning; there seems to be aun underlying bid to the market. With the weather perfect today in New York, look for almost all of the action to take place early. It seems in here like the market will hold all else equal as the financials are showing decent strength pre-open.

Reiterating-New code for the next few days if the whole story is not there due to an expansive number of ideas-If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified

Good-

WYNN- decent earnings; stock traded higher last night initially

JNPR- OK earnings, but a positive conference call

MCHP- decent earnings

BNI- decent report

HUN- ostensibly putting themselves up for sale

MSO- on Cramer

PNSN, QDEL- both strong in closing near their highs

NFLX- good earnings

TROW- good earnings

ACI- very good earnings
Bad-

CB- missed earnings badly

CROX- warned terribly about its outlook

YRCW- warned for year, but has been beaten down…could be interesting to upside

IBKR- terrible earnings

BMC- bad earnings

VSEA- bad earnings

WDC- terrible conference call

RGR- closed near low; likely a short thru today’s low

CACB,ASBC,KBR,AIV- among other smaller financials, all closed near lows

ABFS- down tremendously now in two days; if YRCW mounts a rally, ABFS may get sympathy move

DSL- very weak; may be rumors of going out of business and is short thru unch if it opens higher

SFI, PCBC- both also notably weak



FRI JUL 25 BEF

ALEX .78/500M .77/518M 3.25/2.06B 3.35/2.03B

AXL -.98/514M .02/622M -1.34/2.38B 1.66/2.63B

ACI .64/739M .69/739M 2.67/2.93B 5.86/3.91B

B .60/388M .60/379M 2.35/1.53B 2.64/1.62B

BEC .87/755M .84/739M 3.61/3.09B 4.08/3.33B

BLC .20/193M .24/197M .81/808M .77/782M

BDK 1.42/1.60B 1.37/1.53B 5.32/6.16B 5.60/6.10B

CVH .55/3.02B 1.05/3.04B 3.68/12.07B 4.19/13.16B

FO 1.24/2.06B 1.19/1.97B 4.39/7.97B 4.85/7.83B

HRZ .21/332M .61/351M 1.25/1.33B 1.75/1.41B

IDXX .56/278M .44/261M 1.85/1.07B 2.22/1.20B

IFX ?/2.57B ?/2.64B ?/10.22B .19/9.60B

ITT 1.10/2.93B 1.03/2.81B 4.10/11.52B 4.61/12.21B

LM .13/1.04B .94/1.04B 3.15/4.18B 4.29/4.39B

NFLX .40/338M .31/347M 1.23/1.37B 1.54/1.62B

NTY .70/537M .64/583M 2.69/2.16B 3.11/2.46B

RSG .46/828M .49/830M 1.81/3.26B 2.01/3.39B

TROW .60/568M .63/585M 2.43/2.31B 2.82/2.62B

UCBH .07/93M .07/95M .26/375M .66/422M

Good luck today.

www.protradingnetwork.com

THURS. JUL. 24 THOUGHTS

A few days ago, the term ‘message of the market’ was discussed. One of the things every trader should do is seek out strange nuances that one would think are not “right” in order to determine if something a little deeper is going on. Now, this is perhaps one day late, but a point here can still be made. One of the more interesting things is the fate of the trucking industry these days. Shares of YRC Worldwide (YRCW) traded below 12 on January 4; since that time, the stock has almost doubled. The stock of Arkansas Best Corporation (ABFS) has more than doubled since its yearly low and is actually trading near an all-time high. To the average investor, this makes no sense at all. Why would these stocks be doing so well? Stocks do not trade solely on current factors; rather, the future tends to be priced in. This is why United Airlines (UAUA) can write off more than $21 a share in losses yet have a stock that jumps from 5 to 8 on the day they announce it. Now, we are not going to forecast what is to come, but…but…but why would these trucking stocks be doing so well, yesterday aside? What they are telling us is that the crisis we are undergoing is a financial crisis with some pressure coming out of oil and fuel. Clearly, many goods are being shipped throughout the country and eroding oil prices are going to help the bottom lines of these trucking companies. So, should you go out and buy shares of the truckers for your IRA? Maybe. But that is not what is being proposed here. Rather, it is a theme which we preach all the time- keep in mind the macro while trading the micro. Just because you may not believe in the YRCW story does not mean it cannot go higher so do not get caught up in trying to outthink the situation. This is another reason why people commonly lose; Downey (DSL) ‘seems’ cheap while YRCW ‘seems’ expensive. On a macro basis, that is another issue entirely, but on a micro basis, again, do not get caught up in ‘beliefs’ of a macro view which have little to nothing at all to do with intra-day trading.


Reiterating-

New code for the next few days if the whole story is not there due to an expansive number of ideas-
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specified

If something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified

Good-

QCOM- postponed earnings last night; stock up in anticipation of takeover announcement and/or settlement of Nokia (NOK) lawsuit. Late in evening, they did announce settlement with NOK.

BIDU- great earnings

VAR- great earnings

CAL,DAL,UAUA,LCC,AMR,NWA- among other airlines with continued strength yesterday

WB- announced CEO bought significant stock

NTGR – good earnings

SLM- decent earnings

AMZN- fair earnings; did trade to 77ish last night so short covering could occur.

CVH,AET,XL- all closed at/near highs of day; likely will be some more momentum all else equal

BG- good earnings

CELG- good earnings

GR- good earnings

LLL- good earnings

POT- great earnings

RSH- solid earnings

TMO- great earnings

TRA- good earnings

UNP- good earnings


Bad-

CMG- bad earnings

MCK- bad earnings

XTO-issuing 26 million shares at 48. If it opens below 48, looking to buy above 48. And especially looking to buy thru unch when/if because it shows offering is factored in. Could be best trade of day if set-up presents itself

FFIV- bad earnings

OMTR- bad earnings

RYL- bad earnings

SWIR- abominable earnings

WFR- atrocious numbers

AFL- disappointing earnings

CDNS- terrible warning

CFW- very weak on bad earnings yesterday; if it opens higher, short thru unch.

Earnings-

THURS JUL 24 BEF

ABC .66/17.63B .72/17.71B 2.81/70.59B 3.19/73.96B

ABI .45/590M .39/540M 1.70/2.21B 1.91/2.35B

ALK -.41/937M .61/1.01B -1.82/3.64B -1.69/3.70B

AN .31/4.10B .35/4.24B 1.27/16.33B 1.42/16.46B

ASH .86/2.13B .77/2.11B 2.94/8.25B 3.39/8.64B

AUO .57/4.07B .53/4.02B 2.83/16.83B 2.09/17.72B

BBW -.12/96M .03/110M .70/486M .81/507M

BC -.12/1.42B -.27/1.14B -.42/5.29B .65/5.15B

BDC .90/573M .98/588M 3.46/2.28B 3.94/2.37B

BDX 1.10/1.79B 1.11/1.81B 4.37/7.05B 4.89/7.63B

BG 2.27/13.25B 2.37/13.22B 9.16/55.10B 9.54/60.61B

BLL 1.11/2.09B 1.17/2.05B 3.84/7.74B 4.30/8.00B

BMY .40/5.13B .43/5.21B 1.65/20.84B 1.96/22.39B

CBE .91/1.70B .93/1.68B 3.59/6.61B 3.93/7.04B

CELG .35/539M .38/575M 1.50/2.20B 2.32/2.95B

CLP .52/78M .52/78M 2.18/311M 2.21/324M

CSH .61/239M .64/243M 3.08/1.00B 3.41/1.05B

DO 2.72/919M 2.24/858M 10.03/3.55B 12.39/4.17B

DOW .85/14.89B .74/14.32B 3.23/58.30B 3.01/51.06B

ECA 1.86/6.40B 2.01/6.27B 6.77/27.65B 7.74/30.17B

ECL .47/1.54B .55/1.58B 1.88/6.15B 2.15/6.60B

ELN -.13/249M -.12/269M -.54/1.05B -.14/1.42B

EMN 1.53/1.80B 1.35/1.75B 5.57/7.01B 5.67/7.13B

ESI 1.05/246M 1.08/248M 4.47/988M 4.91/1.10B

ESV 1.98/609M 2.17/632M 8.23/2.46B 8.71/2.69B

F -.27/34.60B -.68/28.36B -1.01/133.75B -.30/136.26B

FBR ? ? ? ?

FCL .21/408M .37/419M 1.27/1.66B 5.66/2.11B

FLIR .27/252M .31/270M 1.21/1.09B 1.48/1.29B

GR 1.08/1.80B 1.09/1.81B 4.51/7.24B 5.01/7.83B

HOT .52/1.50B .66/1.58B 2.45/6.22B 2.76/6.53B

IMCL .31/165M .30/172M 1.26/680M 1.51/794M

IVGN .56/350M .56/346M 2.43/1.41B 2.62/1.51B

JNS .30/285M .32/289M 1.20/1.15B 1.51/1.30B

KCI .93/447M .93/479M 3.79/1.85B 4.13/2.06B

KMB 1.04/4.96B 1.03/4.98B 4.29/19.89B 4.65/20.94B

LH 1.24/1.16B 1.23/1.16B 4.82/4.65B 5.42/4.83B

LLL 1.63/3.66B 1.68/3.63B 6.68/14.66B 7.47/15.62B

LLY 1.00/5.02B 1.01/5.02B 3.94/20.34B 4.30/21.56B

LTM .50/193M .56/203M 2.06/787M 2.43/943M

LUV .12/2.86B .06/2.79B .26/10.94B .37/12.09B

MHS .54/12.56B .58/12.56B 2.31/51.03B 2.71/53.45B

MMM 1.35/6.69B 1.39/6.68B 5.46/26.58B 5.96/28.19B

MNI .21/495M .20/472M .86/1.97B .82/1.84B

MWV .20/1.69B .40/1.78B .97/6.76B 1.33/6.91B

NCC -.26/1.78B -.12/1.80B -.80/7.42B .07/7.44B

NCX .47/1.90B .94/2.06B 2.73/7.46B 2.47/7.36B

NEM .48/1.51B .58/1.63B 2.39/6.74B 2.93/7.31B

NFX .97/534M 1.14/589M 4.38/2.25B 6.63/2.93B

ODFL .57/416M .55/421M 1.89/1.61B 2.28/1.80B

ORI -.05/992M -.03/1.01B -.15/3.94B .67/4.02B

OXY 2.71/6.77B 3.02/7.10B 10.66/24.68B 11.10/25.45B

PCH .38/414M .60/434M 1.98/1.66B 2.10/1.68B

PCZ 2.49/8.05B 2.97/8.16B 9.90/31.38B 10.84/36.15B

PENN .43/627M .54/660M 1.98/2.54B 2.37/2.69B

PLD 1.09/274M 1.15/275M 4.79/1.08B 5.17/1.09B

POOL 1.07/698M .45/519M 1.27/1.86B 1.56/1.94B

POT 2.61/2.52B 3.26/2.86B 11.61/10.51B 20.02/15.65B

RIO .96/12.35B .80/12.18B 3.12/43.94B 4.04/50.67B

ROH .85/2.51B .97/2.50B 3.73/10.07B 4.26/10.67B

RSH .26/909M .31/934M 1.60/4.12B 1.58/4.05B

RTN .93/5.63B .96/5.67B 3.92/22.93B 4.42/24.34B

SCHL .81/552M -.90/321M 2.74/2.28B 2.14/2.06B

SII .89/2.38B .99/2.55B 3.81/10.00B 4.72/11.67B

SNA 1.06/757M .88/741M 4.04/3.00B 4.54/3.18B

SSP .11/256M .07/246M .46/1.04B .28/981M

SU .71/3.45B 1.35/4.45B 4.31/23.22B 6.17/20.28B

SYT ?/1.60B ?/? ?/9.24B 3.32/10.63B

TASR .03/28M .05/31M .15/115M .32/141M

TMO .77/2.62B .78/2.63B 3.15/10.65B 3.65/11.36B

TRA 1.22/824M .98/864M 4.44/2.90B 4.97/3.08B

UNP .92/4.52B 1.15/4.74B 4.06/18.20B 5.01/19.73B

UST .95/509M .92/497M 3.68/2.01B 3.91/2.08B

VDSI .15/34M .16/37M .64/143M .80/178M

WCC 1.36/1.54B 1.41/1.54B 5.09/6.03B 5.41/6.12B

WFSL .36/83M .36/84M 1.54/325M 1.66/350M

XRX .26/4.54B .29/4.46B 1.27/18.36B 1.40/18.79B

ZBRA .46/254M .47/256M 1.88/1.02B 2.15/1.10B

THURS JUL 24 AFT

AFFX .05/92M .11/102M .35/394M .56/438M

AVID -.10/211M .10/220M .08/882M .69/934M

BEN 1.66/1.51B 1.69/1.50B 7.00/6.20B 7.48/6.29B

BMC .43/434M .51/470M 2.15/1.93B 2.45/2.07B

BNI 1.30/4.44B 1.65/4.69B 5.91/18.18B 7.01/19.64B

BUCY .66/583M .75/627M 2.81/2.41B 3.64/2.80B

CAKE .29/412M .33/416M 1.13/1.65B 1.26/1.74B

CB 1.47/3.07B 1.39/2.96B 6.03/12.15B 5.84/12.10B

CCI -.07/371M -.05/378M -.22/1.51B .09/1.62B

CENX 2.24/548M 1.63/560M 7.01/2.12B 7.15/2.27B

CMO .61/100M .61/100M 2.38/407M 2.44/407M

COG .75/238M .90/280M 3.04/1.03B 3.64/1.24B

CPHD -.06/45M -.05/48M -.18/190M .08/242M

CYMI .39/124M .37/122M 1.65/499M 2.04/544M

CYN .81/229M .85/233M 3.39/930M 3.84/990M

DDR .88/230M 1.23/232M 3.94/924M 4.16/966M

EMN 1.53/1.80B 1.35/1.75B 5.57/7.01B 5.67/7.13B

EWBC .05/104M .16/106M .48/436M 1.13/462M

FDRY .15/153M .17/162M .65/637M .78/710M

FII .60/321M .63/325M 2.41/1.28B 2.67/1.35B

FLEX .28/8.30B .31/8.92B 1.25/35.59B 1.47/39.39B

FTI .73/1.37B .77/1.39B 3.00/5.57B 3.60/6.29B

IBKR .50/431M .47/401M 2.11/1.78B 2.32/1.95B

IM .35/8.58B .40/8.79B 1.72/35.89B 1.96/37.88B

JNPR .27/852M .29/888M 1.13/3.50B 1.39/4.12B

MCHP .40/270M .41/278M 1.66/1.12B 1.90/1.23B

MSCC .34/129M .35/133M 1.32/512M 1.62/579M

NETL .37/36M .37/38M 1.51/147M 1.77/176M

OLN .49/408M .53/442M 2.03/1.68B 2.20/1.78B

PKI .34/508M .36/500M 1.47/2.06B 1.70/2.23B

PLXS .39/441M .43/462M 1.88/1.81B 2.01/2.01B

RMBS -.12/34M -.12/31M -.48/155M -.38/155M

ROP .79/603M .83/596M 3.19/2.39B 3.62/2.60B

RVBD .11/77M .13/82M .49/322M .75/404M

SNV .13/384M .15/391M .65/1.57B .85/1.68B

SRCL .42/264M .43/268M 1.70/1.07B 1.98/1.18B

TRMB .45/378M .36/338M 1.55/1.42B 1.82/1.61B

VSEA .25/181M .27/183M 1.54/874M 2.07/916M

WDC .81/1.88B .98/2.03B 4.19/7.96B 4.10/8.39B

WOOF .45/333M .43/334M 1.57/1.29B 1.82/1.43B

WYNN .90/819M .67/739M 3.06/3.10B 2.99/3.80B
YRCW .29/2.40B .51/2.42B .64/9.34B 1.74/9.48B


Good luck today.

WED. JUL. 23 THOUGHTS

In the last few days, selected sectors-stocks have had quite a bounce as there has been a lot of money sloshing around in different directions. Notably, the financial sector has made a very big rebound. However, what seems to be happening beneath the surface within the banking group specifically is that a grouping of haves-have-nots seems to be forming. Stocks like Wachovia Bank WB and Bank of America BAC have announced sizable write-offs yet they rallied anyway. With that in mind, many smaller bank stocks have rallied only to give back ground. For instance, Downey Savings DSL had a massive bounce, but has come back to Earth. From a broad standpoint, it seems like the bottoming action that inevitably takes place at the nadir of every banking cycle seems to be taking place with the ‘survival of the fittest’ principle in full effect. For day traders, it is important to note that there can be and indeed will be divergences of movement even intra-sector. If you note that a bank like DSL is on the verge of being Federalized and that stock is falling, it does not necessarily have the same spill-over effect to the price of Wells Fargo WFC anymore. For those people particularly interested in shorting, this is a principle extraordinarily important to become ingrained.

Markets throughout the world are higher and oil is down again. Whole day will be a macrocosm of individual stocks. If it opens higher and holds, A-B-A2 through at least midday to upside. If it stagnates on open after opening higher, will likely trade down. Odds favor the continued covering though as people are antsy right now.


Reiterating that the new code for the next few days if the whole story is not there due to an expansive number of ideas- If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specified. If something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified.

Good Luck Today!

www.protradingnetwork.com

TUES. JUL. 22 THOUGHTS

In the midst of a busy earnings spate such as this, it is important to take a little time out to prepare for the next couple of weeks as we get further immersed into earnings season. One of the features of our trading at Protrading Network is that we do many news-centric trades thus the inundation of earnings news during the height of earnings season is typically a highlight of the quarter. Typically, most companies base their earnings on the end of each quarter (i.e. Mar. 31, Jun. 30, Sep. 30, and Dec. 31). However, it takes the major accounting firms 2-5 weeks to properly tally the results of the major corporations found throughout the United States. Thus, the 15th of the first month of each quarter through the 15th of the 2nd month of each quarter is typically an extremely busy time for day traders who do news-centric trading. Specifically for Richard Rizzos, the blog will look a bit different during that time as many of the plays will be based off of earnings flow and occur anywhere from 7AM-10AM ET. Some days will include a commentary; other days will just have a trading lesson featured due to a dearth of time. Same quality…different theme. The watch list can also change wildly between 7AM and 10AM as stocks consistently move up and down the list based on how they perform in terms of volatility. What we try to do during that time (as we do every day) is to rank the stocks from most likely to trade to least likely to trade as there will be literally hundreds of trade opportunities. During this time of the quarter, the list sent out each morning will be a snapshot at the time the e-mail is sent, but be aware that you cannot just rely on the top 10 or 15 or 100 because every stock on that list will be important.

New code for the next few days if the whole story is not there due to an expansive number of ideas-
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specified

If something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified

Good-

BXG- received unsolicited takeover bid at 15

LNCR- good earnings

PKG- good earnings

WGOV- good earnings

PBKS- has been very strong in recent days

ST- good numbers; stock was over 37 this morning…has ocme in…I na rally, buy thru unch

CAT- good qtr; warned on year

DD- good earnings

BHI- good earnings

UNH- good earnings

Bad-

AAPL- earnings not good on slowing growth, but worries about Steve Jobs as well.

AXP- atrocious earnings

MRK- bad earnings

SGP- bad earnings

SNDK- bad earnings; warned

STLD- bad earnings

TXN- bad earnings

MHK- bad earnings

EXP- bad earnings

ARTC- restating; terrible news yesterday; looking to short thru unchanged if it opens higher

WCG- restating earnings for four years; may be better than expected as strange as that sounds…really like it thru unch if it opens negative

AGO- abominable earnings and financial machinations

WB- bad earnings

CP- bad earnings

RF- bad earnings

KEY- bad earnings

FCX- bad earnings

FRX- bad earnings


Earnings:

TUES JUL 22 BEF

AKS 1.15/2.10B 1.46/2.09B 4.93/8.08B 5.86/8.90B

ALV 1.25/1.94B 1.11/1.71B 5.02/7.37B 5.37/7.62B

AVY 1.0/1.80B 1.06/1.76B 4.03/6.98B 4.58/7.24B

BHI 1.23/2.77B 1.36/2.95B 5.31/11.46B 6.21/13.03B

BIIB .85/962M .84/984M 3.40/3.91B 3.84/4.31B

BJS .40/1.24B .50/1.37B 1.91/5.17B 2.39/5.80B

CAT 1.55/12.68B 1.51/12.45B 6.05/50.02B 6.75/53.97B

CE 1.15/1.85B .91/1.78B 3.97/7.18B 4.28/7.26B

CHKP .43/195M .44/199M 1.79/804M 1.93/866M

CME 3.86/569M 4.23/590M 17.28/2.39B 21.53/2.79B

CP .98/1.24B 1.24/1.27B 4.26/4.91B 4.98/5.23B

CPO .83/1.01B .73/996M 3.11/3.98B 3.40/4.36B

CSL .82/817M .88/801M 2.84/3.03B 3.18/3.11B

DD 1.07/8.47B .57/7.03B 3.50/31.70B 3.71/33.08B

DGX .78/1.84B .81/1.85B 3.13/7.30B 3.63/7.69B

ERIC .17/8.01B .17/7.66B .80/32.35B 1.01/34.37B

FITB -.05/1.58B .26/1.65B .95/6.50B 1.30/6.87B

FCX 2.43/5.26B 3.0/5.89B 11.58/23.08B 12.85/23.85B

FRX .80/979M .75/987M 3.23/4.03B 3.62/4.42B

GNTX .21/176M .21/178M .85/720M .96/810M

HAL .68/4.25B .75/4.51B 2.88/17.53B 3.56/20.44B

HXL .24/337M .23/328M .96/1.37B 1.20/1.54B

JEC .82/2.75B .86/2.93B 3.25/10.82B 3.91/13.41B

JEF -.16/275M .02/301M -.37/1.12B .74/1.43B

JBLU -.08/856M -.12/900M -.45/3.41B -.55/3.77B

KEY -2.58/1.19B .21/1.22B -1.76/4.84B 1.25/5.13B

LMT 1.88/10.86B 1.90/10.96B 7.47/42.87B 8.28/45.54B

LXK .78/1.14B .58/1.12B 3.36/4.69B 2.97/4.60B

MICC 1.34/864M 1.56/933M 5.75/3.60B 7.11/4.40B

OMC .96/3.45B .69/3.38B 3.37/13.91B 3.67/14.64B

OXPS .39/61M .40/62M 1.62/253M 1.89/288M

PCAR .84/3.72B .88/3.78B 3.39/14.72B 4.22/16.86B

PCP 1.93/1.84B 2.01/1.89B 8.21/7.65B 9.45/8.50B

PNR .67/926M .59/861M 2.35/3.48B 2.63/3.67B

RCL .40/1.59B 1.81/2.09B 2.79/6.58B 2.88/7.27B

RF .42/1.77B .43/1.78B 1.77/7.21B 1.96/7.45B

ROK .99/1.43B 1.05/1.49B 4.03/5.64B 4.35/5.96B

RYN .42/293M .56/323M 2.01/1.21B 2.20/1.25B

STI .64/2.13B .72/2.17B 2.91/8.65B 3.82/9.14B

SVU .76/13.19B .74/10.15B 3.08/44.81B 3.30/45.10B

SWK 1.03/1.13B 1.12/1.13B 4.11/4.52B 4.52/4.58B

UAUA -1.97/5.39B -2.55/5.67B -12.46/20.83B -8.54/21.12B

UPS .85/12.82B .87/13.01B 3.64/52.72B 4.16/56.41B

UNH .65/20.03B .76/20.02B 2.95/80.36B 3.40/84.21B

USG -.36/1.21B -.30/1.20B -1.38/4.64B -.87/4.57B

WAB .65/367M .64/393M 2.60/1.55B 2.95/1.68B

WAT .71/394M .72/390M 3.26/1.64B 3.71/1.78B

WB -.06/8.55B .53/9.20B 1.04/35.30B 2.37/38.71B

WBS .42/177M .49/178M 1.90/707M 2.30/742M

WU .31/1.33B .33/1.39B 1.28/5.43B 1.48/5.97B

WTNY .23/137M .28/138M 1.29/557M 1.55/600M

XTO 1.05/1.83B 1.20/2.08B 4.38/7.84B 5.86/10.10B

TUES JUL 22 AFT

ANAD .16/78M .18/83M .69/323M .83/377M

BXP 1.17/364M 1.19/375M 4.68/1.45B 5.05/1.48B

BRCM .36/1.10B .38/1.16B 1.50/4.50B 1.56/5.07B

CEC .31/185M .56/204M 2.40/815M 2.60/836M

CERN .50/399M .56/424M 2.17/1.66B 2.59/1.84B

CHRW .55/2.19B .56/2.15B 2.17/8.59B 2.49/9.65B

DRH .44/182M .35/168M 1.56/720M 1.60/740M

DST .90/426M .93/419M 3.85/1.73B 4.40/1.80B

EW .64/312M .56/295M 2.50/1.23B 2.91/1.34B

FULT .22/165M .22/168M .90/669M .95/666M

ILMN .28/130M .31/137M 1.21/536M 1.78/681M

INFN -.03/89M -.12/77M -.16/341M -.04/412M

ISRG 1.18/208M 1.27/223M 5.06/873M 7.04/1.18B

LLTC .45/307M .46/311M 1.70/1.17B 1.89/1.29B

MRH .62/143M .56/144M 2.29/586M 2.52/614M

NBR .69/1.25B .81/1.34B 3.22/5.30B 3.99/6.03B

NSC 1.05/2.65B 1.11/2.67B 4.03/10.5B 4.64/11.22B

ORLY .48/702M .48/806M 1.75/2.86B 2.02/3.25B

PNRA .49/319M .41/319M 2.15/1.31B 2.62/1.41B

PPDI .40/374M .43/389M 1.83/1.56B 2.12/1.79B

PTV .48/931M .47/919M 1.79/3.60B 2.09/3.70B

RJF .55/709M .54/719M 2.05/2.81B 2.33/3.04B

SIAL .67/579M .65/568M 2.65/2.31B 2.98/2.50B

STSA .12/114M .16/114M .53/457M .93/493M

STM .12/2.33B .18/2.43B .67/9.81B .91/10.31B

TMX .70/3.02B .73/3.07B 2.63/14.10B 2.75/13.82B

TSFG -.17/123M -.09/124M -.47/495M .41/517M

USNA .61/108M .60/108M 2.30/431M 2.45/460M

VMW .23/459M .25/499M 1.02/1.97B 1.41/2.67B

WM -.93/3.60B -.67/3.68B -3.20/14.75B -.46/14.43B

YHOO .12/1.38B .12/1.41B .48/5.74B .62/6.53B

Good luck today.

MON.. JUl. 21 THOUGHTS

There has been much talk – without going into expansive detail- that much of the recent rally has occurred due to a government-orchestrated short squeeze. To discuss that debate in this space would take many pages. So, let’s focus on one aspect of it for day trading purposes. The actions taken by the federal government in the last week have been largely unprecedented in modern financial history. Ostensibly, by the SEC simply enforcing laws in place, it has made shorting of stocks a bit more difficult. Notably, shares of BNPQF, BAC, BCS, C, CS, DSECY, DB, AZ, GS, RBS, HBC, JPM, LEH, MER, MFG, MS, UBS, FRE, AND FNM were identified in an SEC memo as the issues they will be paying particular attention to. Thus, borrowing shares of stock became a much more arduous process at almost every brokerage house last week and it will be even worse this week as the SEC dictum will be in place starting at 12:01AM this morning. Therefore, while many of us will be frustrated when we see messages like “short sale violation” when we try to short certain stocks (not limited to the aforementioned symbols), be aware that it is occurring everywhere and will likely intensify in coming weeks.

Overnight, markets in Hong Kong were sharply ahead (up 3% plus) while the gains tumbled over into Europe. Oil is back up as well amid the storm approaching the Texas-Mexico border and more Iran noise. The futures are up sharply in the early hours after Bank of America (BAC) posted relatively good earnings and Genentech (DNA) received a takeover bid for the rest of it shares. It’d seem like the markets are a bit overextended in here so the market play is the same as Friday’s: short selected weakness, but otherwise look for an overall A-B-A2 to the upside for the market should it not break in the first few minutes (which it likely will not).

BAC- great earnings. Using a benchmark for the first part of the day at least; not really trading it, but it is one of those stocks that is not shortable per the SEC.

FNM,FRE- up on the BAC numbers. If BAC strengthens, these could be secondary plays on the long side.

CVP, GENC- closed at or near highs. If they open down, they are buys. If they open higher, A-B-A2 would be nice to upside.

YHOO- Icahn only getting one seat on board thus it’d seem like a victory for Yang. If stock trades higher- particularly before 8AM ET, short thru unch.

STT- up sharply the last few days. Using as a proxy for BAC in case it is relatively weak and BAC sells off.

OSTK, VCLK- both closed on lows. If they open higher, likely shorts thru unch.

Earnings season in full force this week; there will be many after-hours plays in particular- earnings list below:

MON JUL 21 BEF

ALB .65/635M .68/649M 2.76/2.62B 3.22/2.84B

AME .57/627M .62/620M 2.47/2.51B 2.87/2.68B

BAC .55/18.42B .74/19.64B 2.34/75.94B 3.48/84.53B

CNB .01/233M .05/236M .28/945M .54/993M

HAS .22/675M .85/1.21B 2.17/3.89B 2.41/4.01B

MRK .83/6.05B .82/6.10B 3.31/24.28B 3.64/25.45B

RX .40/592M .45/598M 1.74/2.43B 1.96/2.61B

SGP .40/4.77B .30/4.42B 1.54/18.49B 1.73/19.32B

UB .92/681M 1.01/700M 3.69/2.75B 4.24/2.91B

WFT .45/2.21B .57/2.44B 2.18/9.58B 2.86/11.93B

MON JUL 21 AFT

AMX .86/8.03B .91/8.29B 3.49/32.48B 4.22/35.65B

AAPL 1.08/7.35B 1.24/8.29B 5.21/32.73B 6.38/40.21B

AMLN -.49/224M -.50/236M -1.99/908M -1.48/1.07B

BSX .11/2.01B .12/1.99B .55/8.08B .66/8.37B

CNI .86/2.05B .99/2.13B 3.39/8.23B 3.95/8.80B

EFX .60/508M .64/512M 2.54/2.04B 2.74/2.17B

EXP .29/198M .40/208M 1.20/722M 1.49/778M

HPC .43/601M .45/600M 1.63/2.34B 1.92/2.50B

LNCR .71/422M .66/422M 2.85/1.69B 2.33/1.75B

LOGI .19/511M .45/676M 1.68/2.72B 1.92/3.10B

LRY .79/192M .79/194M 3.16/772M 3.25/796M

MHK 1.28/1.84B 1.40/1.82B 5.00/7.10B 5.17/6.93B

OMCL .16/62M .16/63M .68/251M .87/293M

PKG .34/600M .36/607M 1.40/2.38B 1.77/2.46B

QLGC .29/161M .28/162M 1.14/656M 1.18/686M

RE 3.27/1.11B 2.70/1.11B 12.19/4.33B 12.16/4.37B

SNDK .14/911M .40/1.12B 1.39/4.28B 1.74/4.85B

STLD .93/2.35B .97/2.43B 3.46/9.12B 3.74/9.58B

TXN .46/3.39B .51/3.56B 1.96/13.76B 2.16/14.53B

WGOV .43/308M .44/325M 1.67/1.21B 1.93/1.34B

Good luck today.

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