=================================== D A Y T R A D E R S R E P O R T =================================== for 04/27/07 (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 -------------------------------------------------------------------------------- L-3 Com * LLL 04/20/07 90.91 93.05 2.140 2.35% 93.05+ SOLD Netflix * NFLX 04/25/07 21.45 21.95 0.500 2.33% 21.95+ SOLD Apple * AAPL 03/29/07 93.30 95.25 1.950 2.09% 95.25+ SOLD RF Micro ~ RFMD 04/20/07 6.32 6.40 0.080 1.27% 6.48+ +6.20 Cost Plus * CPWM 04/26/07 9.95 10.02 0.070 0.70% 10.20+ +8.75 AT&T T 04/18/07 39.15 38.96 -0.190 -0.49% 40.20+ +38.25 Genentech ~ DNA 04/10/07 81.70 81.02 -0.680 -0.83% 83.75+ +80.65 Sun Micro ~ SUNW 04/02/07 5.48 5.27 -0.210 -3.83% 5.60+ +5.25 AMD ~ AMD 01/22/07 16.06 14.50 -1.558 -9.70% 16.45+ +15.20 Quest Diag !~ DGX 08/30/06 56.91 50.20 -6.713 -11.79% 58.34+ +50.00 Radware Ltd ~ RDWR 12/21/06 14.98 12.97 -2.013 -13.44% 15.35+ +14.25 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 positions to add for Friday. Due to the additional cost averaging we have had to do this week, we feel it's best to focus on taking profits for the moment. We'll be back with additional recommendations next week based on where things stand Friday at the close of trading. * NFLX - This position was sold during strength, after the stock exceeded our price target of $21.95. Congratulations to members who made the trade and earned a nice return! * SUNW - This position was cost averaged a second time at $5.25 as suggested. Due to the reduced cost basis and number of shares held, we have adjusted our price target to $5.60 or higher on the position. * CPWM - This position was added during weakness at $9.95 as outlined. *** = 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 15.61 points Thursday to close at 13105.50, while the Nasdaq added 6.57 points to end at 2554.46. The S&P finished off by 1.17 to end the session at 1494.25. Volume on the NYSE was above average, as roughly 3.21 billion shares traded, with declining issues leading by a margin of approximately 17 to 15 The markets continue to hold their own, which is definitely a positive. Earnings reports from the likes of AAPL and AMZN, as well as a number of the Dow Components this week, all have helped reassure investors that the sky is not falling and that corporate growth (at least among the high-line companies) is not falling through the floor. Indeed, so far this week has been an impressive one. Just when many on the street might have thought that the major market indexes were due for a pullback, the Dow was able to break through the 13,000 mark with quite a bit of conviction (not to mention very impressive volume). It's possible that investors are starting to warm back up to the markets after the recent subprime lending scare. That's not to say the issue of subprime loans has gone away. However (at least for the moment), it does appear that the concerns may have been overblown to some degree. Additionally, as mentioned last week, earnings have served to provide quite a nice distraction for investors - and largely a bullish one. Friday we could see some profit taking, but it's difficult to say for sure. For the most part, however, the number of earnings on schedule are mild. As such, investors may tend to turn their focus back to economic data, which includes Friday's GDP, Chain Deflator reads. This is in addition to the Employment Cost Index and Michigan Sentiment data. As we have seen recently, investors will be keeping a close watch for signs of core inflation on the horizon - especially since the Fed has indicated that they may become more aggressive down the road if needed. In any event, as far as our trading goes, we will not be looking to add any additional positions Friday. Instead, we feel it's best to focus on taking profits. With the recent cost averaging we have done, it will be important to build cash levels back up a bit. This is especially true given the market's recent advance. The last thing we want to do is end up on the wrong side of a pullback with too little cash. Overall, however, the portfolio appears to be in very decent shape. Aside from our two lagging plays in RDWR and DGX, most of our holdings are doing well. Even AMD has recovered to some extent and may be showing signs of starting a rebound (difficult to say just yet however). For now, let's take profits when seen and we'll be back Monday with some additional trading recommendations. 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