=================================== D A Y T R A D E R S R E P O R T =================================== for 02/09/07 (best viewed or printed in Courier 10 point) -------------------------------------------------------------------------------- NOTICE: The recommendations and information provided here are not necessarily those of the editor or DayTraders.com, nor should they be interpreted as investment advice or as an endorsement of any security or company's stock. This information is provided for informational purposes only and without warranty of any kind. Be advised that day trading has large potential rewards, as well as large potential risks involved. Trading of securities may not be suitable for all users of this information. You, and not DayTraders.com, assume the entire cost and risk of any investing or trading you choose to undertake. Remember, past performance does not ensure future results. Editors, staff and members of DayTraders.com may have long or short positions in securities and/or options listed herein. Further, the redistribution of information provided here or via our Internet site, without the express written consent of DayTraders.com, is strictly prohibited. The receipt of this information constitutes your acceptance of these terms and conditions. -------------------------------------------------------------------------------- SHORT TERM TRADING PORTFOLIO ------------------------------ (1 day to 1 month) TICKER DATE PRICE LAST PRICE GAIN SELL CURRENT COMPANY NAME SYMBOL BOUGHT PAID PRICE CHANGE LOSS TARGET STATUS -------------------------------------------------------------------------------- Silicon * SIMO 1/17/07 18.70 19.55 0.850 4.55% 19.20+ SOLD Blue Nile * NILE 2/8/07 40.00 41.05 1.050 2.62% 41.05 SOLD Level 3 * LVLT 2/1/07 6.15 6.31 0.160 2.60% 6.31+ SOLD PSS World *~ PSSI 12/7/06 20.53 21.04 0.515 2.51% 21.04+ SOLD Garmin Ltd * GRMN 1/25/07 50.25 51.50 1.250 2.49% 51.50+ SOLD Sirius Sat ~ SIRI 1/24/07 3.72 3.73 0.010 0.27% 3.80+ +3.55 Home Depot HD 2/7/07 41.05 41.09 0.040 0.10% 42.07+ +37.55 Gilead Sci *- GILD 2/5/07 71.18 73.10 -1.925 -2.70% 68.88- STOP Apple AAPL 1/22/07 88.80 86.18 -2.620 -2.95% 91.00+ +78.50 Nasdaq 100 ~- QQQQ 9/15/05 42.28 44.45 -2.170 -5.13% 43.25- +41.50 Oracle ORCL 1/10/07 17.65 16.71 -0.940 -5.33% 18.10+ +16.25 Quest Diag !~ DGX 8/30/06 56.91 52.41 -4.503 -7.91% 58.34+ +50.00 Radware Ltd ~ RDWR 12/21/06 15.35 13.75 -1.600 -10.42% 15.73+ +14.75 AMD ~ AMD 1/22/07 16.92 15.13 -1.785 -10.55% 17.34+ +15.20 Sandisk !~ SNDK 10/17/06 50.21 41.84 -8.370 -16.67% 51.45+ +42.50 Legend: * = Changes to portfolio (buy/sell) + = Cost average at this price or lower - = Indicates a Short position @ = Stop recommended at this level ! = Medium/longer term hold ~ = Stock price was cost averaged -------------------------------------------------------------------------------- DAY TRADING RECOMMENDATIONS & OUTLOOK --------------------------------------- NOTE: The following stock recommendations are short term plays which may produce results in a time frame of anywhere from one day to several weeks. In some cases, these recommendations may be slightly different in nature than the stocks recommended at the 'Trading Desk' and vice versa. The Trading Desk takes place at our web site during the day and focuses more on intraday plays. We feel the combination of mid term and short term information gives members a good foundation to work from when picking stocks. For more information about the Trading Desk please visit our web site or contact us anytime. New members have a look at http://www.daytraders.com/system.html and please keep in mind we cost average often. That means test the waters by purchasing some shares at recommended levels, then if the stock moves down and we still like it, buy additional shares to reduce your overall price. This means you must use discipline when buying initially and leave yourself some cash to work with. Please see the link above for further details if you are just joining us. -------------------------------------------------------------------------------- * NOTE: Current allocation model (based on market conditions, stock charts and market indexes) suggests the use of approximately 50% trading capital, while holding 50% cash - subject to change weekly. Continue to use price targets as your base target for taking profits on all positions. Not recommending excessive margin use at this time. Use these recommendations as a guideline to build your own allocation model. See http://www.daytraders.com/performance.html for recent model portfolio results. -------------------------------------------------------------------------------- ** NFLX - Let's consider taking up a position in this stock at any price of $23.50 or less, while being ready to cost average should we see any weakness down into the $21.25 or lower levels. Medium term hold with a possible price target of $24.10 or higher. Shares of Netflix appear to be breaking out of their recent "mini" consolidation and, in our view, could be poised to attempt a move back north of $25.00 per share. If possible, we'll be looking to catch the shares on some weakness, then hold for what we believe could be a continued turn around from recent levels. Netflix, Inc. operates as an online movie rental subscription service provider in the United States. It provides its subscribers access to a library of movie, television, and other filmed entertainment titles. * AMD - Let's consider cost averaging this position again at any price of $15.20 or less if seen (this will mean 4 lots total, or a "double down" on the current open position). Given the stock's recent sell-off, we'll be looking to add to our current position in the portfolio if possible, in order to reduce our cost basis. Recently, tech stocks have come under some pressure. However, longer term, we feel AMD is very well positioned to compete with Intel and may very well continue to gain market share. At the moment, due to Intel's new dual core chip, some of the shine has come off AMD. However, AMD is a strong competitor and our understanding is that they have some new innovations coming down the pipeline, which are supposed to be pretty. Additionally, they are now a very definite presence with Dell.com and we feel this will help them achieve a more firm foot hold among retail consumers (AMD has long had a very good reputation in the server and Unix world). This play may require some additional holding, but we feel shares of AMD may be over sold at current levels. * NILE - This position opened slightly below our entry price and was subsequently added at $40.00 per share. The stock then went on to rally quite nicely throughout the day, easily taking out our price target of $41.05. Congratulations to members who made the play and earned a nice 2.62 percent return intraday! * PSSI - This position finally achieved some traction Thursday (after being added to the S&P SmallCap 600) and was able to break out, hitting our price target of $21.04. A big congratulations to members who remained patient with the play and earned a nice 2.51 percent return - way to go! *** = HOT TRADE (could move big intraday / long term based on news or chart) ** = GOOD TRADE (looks pretty good based on technical chart analysis, sector) * = NOTE/UPDATE (update or notes regarding current recommendation or price) REMINDER: Shorting stocks contains somewhat higher risk than normal investments and may not be suitable for all day traders. Consult your brokerage before shorting any security or doing trading of any kind. Use our price targets as a guide to your own trading and remember that taking consistent profits over time is the key to this business. Keep in mind we may need to average down at times and that limited capital tied up in a single stock can cause additional risks to your trading. Exit and entry prices are only guidelines, please use your own judgement in trading at all times. For additional reading material, please refer to our book list at http://www.daytraders.com/booklist.html or feel free to e-mail us your questions. ----------------[ REFER TO SELL TARGETS FOR FURTHER EXIT PRICES ]--------------- MARKET NEWS & COMMENTARY -------------------------- The Dow lost 29.24 points Thursday to close at 12637.63, while the Nasdaq fell 1.83 points to end at 2488.67. The S&P finished off by 1.71 to end the session at 1448.31. Volume on the NYSE was about average, as roughly 2.80 billion shares traded, with declining issues leading by a margin of approximately 17 to 16. It seemed largely that stocks had trouble getting out of their own way Thursday. By day's end, all three major indexes closed in the red for the session, with the Nasdaq and S&P only briefly managing to break above the flat line. Crude oil rebounded a full two dollars per barrel, closing just shy of the $60 per barrel mark, and this likely kept pressure on stocks throughout the session. The price of Gold also rallied, which may indicate some growing concerns about the state of the economy longer term. In addition to the price of oil, concerns over the possible negative economic impact of a slowdown in the housing market also kept pressure on stocks. In fact, a number of housing related stocks came under pressure Thursday, including shares of Home Depot, which we currently hold long. However, with regard to Home Depot specifically, we feel this company tends to be somewhat isolated from the housing sector as a whole. That may sound funny, given that Home Depot is very closely tied to the housing market in many ways. However, while new home sales and existing home sales may be slowing down, the number of homes which have recently changed hands is still very large. As such, even if home sales do slow, there still remains a very large number of owners fixing up and remodeling their recent purchases. Given this situation, we feel comfortable holding the stock, even in the face of news from companies such as Toll Brothers, a company which recently warned that revenues and new orders would come in weaker than anticipated. Keep in mind also, from a trading standpoint, selling in the market isn't always a bad thing. Even if it hits a stock you may currently hold, the act of selling does tend to clear out some of the over-hang in the shares. Take shares of HD again, just as an example. On Thursday, the shares came under some pressure due to related news in the housing sector (i.e. the news from Toll Brothers). Since the news wasn't exactly company specific to shares of Home Depot, the selling generated is likely momentary at worst. The important point to keep in mind is that any time investors and/or traders exit a position, it removes that many more people holding the shares who are prone to sell. In the most extreme case, with nobody left to sell a stock, buyers easily push shares into higher ground (commonly called "blue sky"). So while shares of HD (just to again use our example) did sell off, in our view, largely all that occurred was that some holders of the stock were scared out of their positions, thus making it a little easier for the stock to rally later on. Baring any major/negative company specific news, we feel a little selling in any stock is often times healthy; many times clearing the path for higher ground down the road. In any event, as far as our trading goes, we'll be looking to add one additional position if possible. Typically, we avoid adding stocks on Friday. However, since we have been successful in closing out a number of positions this week, we felt it would be nice to attempt one additional trade as we finish out the week. In the meantime, let's continue to keep cash levels high and take profits when available to us. All right then, that's it for today and this week. We'll have further recommendations as we move forward. For now, let's continue to take profits when seen and keep cash levels up a bit to limit any further downside risk. As always, good luck in the markets and we'll see you around the Trading Desk in the morning. :-) Ray Johns Senior Market Editor DayTraders.com -------------------------------------------------------------------------------- Copyright (c) 2007 - DayTraders.com All rights reserved worldwide. Proudly serving daytraders & short term investors since 1996 Redistribution is strictly prohibited DAYTRADERS.COM P.O. 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