=================================== D A Y T R A D E R S R E P O R T =================================== for 02/16/07 (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 -------------------------------------------------------------------------------- Avanex * AVNX 2/15/07 1.90 1.95 0.050 2.63% 1.95+ SOLD Ralph L. * RL 2/12/07 83.15 85.20 2.050 2.47% 85.20+ SOLD Finisar * FNSR 2/13/07 3.10 3.17 0.070 2.26% 3.17+ SOLD Home Depot * HD 2/7/07 41.05 41.25 0.200 0.49% 42.00+ SOLD Sirius Sat ~ SIRI 1/24/07 3.72 3.60 -0.120 -3.23% 3.80+ +3.55 Apple AAPL 1/22/07 88.80 85.21 -3.590 -4.04% 91.00+ +78.50 Oracle ORCL 1/10/07 17.65 16.91 -0.740 -4.19% 18.10+ +16.25 Netflix NFLX 2/9/07 23.50 22.50 -1.000 -4.26% 24.10+ +21.25 Quest Diag !~ DGX 8/30/06 56.91 53.92 -2.993 -5.26% 58.34+ +50.00 Nasdaq 100 ~- QQQQ 9/15/05 42.28 44.86 -2.580 -6.10% 43.25- +41.50 AMD ~ AMD 1/22/07 16.06 14.83 -1.228 -7.64% 16.45+ +15.20 Radware Ltd ~ RDWR 12/21/06 15.35 13.87 -1.480 -9.64% 15.73+ +14.75 Sandisk !~ SNDK 10/17/06 50.21 41.15 -9.060 -18.04% 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. -------------------------------------------------------------------------------- * NOTE - No additional stocks to add for today. Let's focus on taking profits if seen and we'll be back Tuesday (Monday is a market holiday) with some additional selections. * AVNX - This position was added during weakness at our suggested price of $1.90. The stock then rallied during the day and was sold, after hitting its target price of $1.95. Congratulations to members who made the play and earned a nice 2.63 percent return intraday! * RL - This position rallied nicely on Thursday, taking out our price target of $85.20. Congratulations to members who made the play and earned a solid 2.47 percent return! *** = 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 gained 23.15 points Thursday to close at 12765.01, while the Nasdaq added 8.72 points to end at 2497.10. The S&P finished higher by 1.51 to end the session at 1456.81. Volume on the NYSE was slightly below average, as roughly 2.50 billion shares traded, with advancing issues leading by a margin of approximately 19 to 13. The markets extended their gains Thursday, however it was certainly not as powerful a move as seen on Wednesday. Both volume and the advance/decline line were below the previous session, which tends to indicate less market participation, as well as a slightly less powerful move into positive territory. Nevertheless, it was still bullish to see the markets continue into higher ground. The Dow hit a fresh all-time high as well, building on its recent record setting close above 12,700. The markets clearly were able to extend their gains on the heels of the positive words from the Fed regarding inflation and the state of the economy. As mentioned, the recent comments from Fed Chairman Ben Bernanke will likely overshadow most (if not all) of the economic data this week. The one possible exception to this could be the PPI report (scheduled for release at 8:30 AM EST), as it may give some possible insight into next week's CPI data (due to be released on Wednesday the 21nd (along with the full minutes of the January's FOMC meeting). Again, at the moment, it's very possible that the markets will remain in good spirits over the very comforting words from the Fed. Short of some extremely out of line economic data, we suspect that stocks will likely hold their own - or at worst, will likely be partially insulated from negative impact by economic data for the near term (near term in this case being probably around a week). Moving forward, we may shift our focus slightly with regard to our trading. Recently, we have been playing the beaten down tech sector with some degree of success. However, with the Nasdaq and Dow now both starting to look extended once again, we feel it may be better to shift some of our focus more into lower risk type stocks, such as those which produce consumer staples and/or non-durable goods. This is not to say we will avoid tech stocks completely, but rather that we may look to supplement things a bit by taking a slightly wider view of stocks over the next week or two. We may also increase our short exposure, although most likely the markets would need to rally a bit further before we became too aggressive in that area. For now, we'll continue to be very selective moving forward. In any event, as far as our trading for Friday, we will not be looking to add any additional positions. Given that Monday is a market holiday, we feel it's best to take it easy and use the weekend in order to recover. Always keep in mind, trading takes a lot out of you, and as such, getting adequate rest can often be just as important as picking the correct stocks. It's also quite possible that the markets may see a bit of profit taking on Friday, so we feel it's best to let that work itself out first and then return Tuesday with some additional positions (perhaps at more attractive prices). For now, have a great weekend and we'll see you back here on Tuesday! 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. Box 150 Pacific Grove, CA 93950 http://www.daytraders.com For all questions & customer service needs, e-mail to: support@daytraders.com