$BBBY Will Re-Test Highs?

"Revenue at stores open at least a year rose 7 percent. That's an important retail measurement because it excludes the effects of stores that open or close during the year.
The company reported net income of $180.6 million, or 72 cents per share, for the quarter, compared with $137.6 million, or 52 cents per share, in the same quarter last year. Revenue rose nearly 10 percent to $2.11 billion.
The results beat analyst expectations of 62 cents per share on revenue of $2.07 billion, according to FactSet.
Bed Bath & Beyond said it now expects to earn 77 to 82 cents per share for the second quarter. Analysts had expected 82 cents per share.
In raising its full-year forecast, Bed Bath & Beyond said it expects earnings to rise 15 percent to 20 percent from last year. In April, the company said it expected a 10 percent to 15 percent increase." AP

Good results; 15P/E for a 10% sales grower seems reasonable which gives something in the area of $55.00 to 57.00 . (No debt...full of cash).

$ADBE Overreaction? Second Day Levels.

"Profit excluding certain costs in the second quarter, which ended June 3, rose to 55 cents a share, Adobe said in a statement yesterday. That compared with the 51-cent average analyst projection in a Bloomberg survey. Revenue increased 8.5 percent from a year earlier to $1.02 billion, topping analysts’estimates for $995.7 million.
In the current quarter, profit before some expenses will be 50 cents to 56 cents a share, Adobe said. That compares with a 54-cent average analyst prediction. Revenue will be $1 billion to $1.05 billion, the company said, while analysts had estimated $1.02 billion" BLOOMBERG

IMHO seems to me there was some overreaction

$KMX Second Day Levels.

"...posted net income of $126.3 million, or 55 cents per share for the three months ended May 31. That's up from $101.1 million, or 44 cents per share, a year ago. Earnings included a 3 cents per share gain related to its financing arm.Revenue rose 18 percent to $2.68 billion on strong used car sales and higher prices. Sales at stores open at least one year increased 6 percent.
Analysts surveyed by FactSet forecast adjusted earnings of 47 cents per share on $2.52 billion in revenue"

Adam H. Grimes Seminar on Entry Techniques. $study

Very interesting seminar. This is about one hour long , but took me about two hours or more to listen since its very rich in interesting trading statistics/observations that I had to keep stopping/rewinding so as to write down salient points such as:

- Only 4 types of trades exist really. (5 minutes 30 seconds)
- Difference of and proper use of "TippingPoint" and "Scaling In" entries. (10 minutes 20 seconds)
- Clarification/consistency of your time-frame. (19 minutes 30 seconds)
- Relation between the open and the day´s range. ( 34th minute )




Note that he is a swing trader, not an intra-day trader...trades based on daily bars...but honestly a lot if not all that he says can be "brought down" to a lower time frame.

Darth Vader, Peter Sellers and Stop Losses. $study

Stop losses are so important. Not using them makes you look like Peter sellers in this scene I´ve blogged about before...you just stare as the position moves against you.

http://jpotrading.blogspot.com/2010/09/link-between-not-using-stop-losses-and.html


I encountered another scene pertinent to the issue of using stop losses....how often have you told yourself  "I will never again overide or not use them" but end up doing so....again? Just like Darth Vader keeps puting his foot in the oven in the following video...

On Shorting Relative Strength. $WTW $SYY $study

-I  am often tempted to short stocks showing relative strength. This can be dangerous and goes against perceived "trading wisdom" . In fact I have blogged before about the importance of relative strength :

                        http://jpotrading.blogspot.com/search/label/relative%20strength

-If I do this I must first wait for relative weakness to manifest itself by, for example, a red 5 minute candle bar that takes out two or three of the previous five minute bars. The exact point of where you go short will depend on the stock, the general market strength, etc, but a valid short is now possible. I show this in the two charts below for $SYY and $WTW .

- The most important thing now is to input your stop-loss order somewhere close to the previous high as shown in the two charts. If you do not do this "horrible" things can happen....imagine not putting the stops in the chart below for $WTW .

$THOR Strong. Will it break 33.65?

-I identified 33.65 as important resisntance back on april 18th. http://jpotrading.blogspot.com/2011/04/thor-moving-pre-market-levels.html

It closed on friday at 33.58 (up about 5 %)...will keep an eye for a break of the level.

$PVH will 67.00 Hold?

-If it does , trade the 67.00/69.00 range.

$WTW 71.50 Key Pivot

http://www.fool.com/investing/general/2011/05/06/weight-watchers-shares-plunged-what-you-need-to-kn.aspx

-Plan to trade long above 71.50 , short below.

Using Volume Spikes in Intraday Trading. $SLV $FXE $BBBY $CL $study

-If you are looking for a change in the intraday trend of an asset, volume spikes can be very helpful. I blogged in the recent past about an intraday spike in $BBBY and $CL . I blogged about both wondering if a turn would happen after I saw what seemed like a spike and in both cases the theory was correct...both stocks turned direction with the volume spike coinciding with the highs for the day.

 - http://jpotrading.blogspot.com/2011/04/bbby-surge-in-volume-indicating-turn.html
 - http://jpotrading.blogspot.com/2011/04/cl-8500-high-for-day.html

-Yesterday silver was collapsing and coincidentally the dollar was very strong. People were wondering if there was a cause and effect and if so in what direction; so I watched $FXE while wondering when/if $SLV would turn.

-The 11.00 volume bar in $FXE shows a spike in volume and the dollar stops stregthening.
-The 11.10 volume bar makes a huge volume spike (turns out biggest of the day).

This gave me confidence to make a long scalp in silver...the thought of something more substantial occured to me but $FXE and $SLV were just not bouncing with the energy needed.

$JDSU Levels for Afternoon Trading

-Long term support at 21.60 .-Short term resistance 22.30

$AVP Levels and Trading Plan.



Support            Resistance        Pivot

30.30               31.30/31.60       31.00

Notes:    OK results, yesterday´s 5% pop looks like enough.

Plan:       Short Bias especially if staying  below 31.00 . Fade 31.30 .



$HLF Levels and Trading Plan



Ticker           Support                   Resistance           Inflection     

HLF             100.60/101.45       103.30/104.30               

-Notes:         20+% growth in revenues; $6 x 20 = $120       http://finance.yahoo.com/news/Herbalife-Earnings-Third-wscheats-1464152871.html?x=0&.v=1

-Plan:           Long bias, trade the range, watch for test of 104.30  for breakout.

$CL 85.00 High for the day?

CL up over 2% today with upgrades after results yesterday. Yesterday was up around 3% . DOes that volume bar where it reaches 85.00 indicate a near term top? Shortred at 84.80.

$WTW Shorting it.

-$WTW has been on a tear since last posting results. Yesterday  there was a nice red candle on the daily chart showing  the largest daily loss since last posting results; and this on a day the market was reaching new highs.

-Today it has recoverd most of the loss, but I am betting its a dead cat bounce and shorted at 77.90 close to the opening level of yesterday´s red candle.

$SBUX Long and Short Term Trading Levels

$WHR Long Term Trading Levels.

$BRCM Long Term Trading Levels

$AMZN Trading Levels

Trading Levels for Tomorrow $PLCM $ARUN $KMB