Miles J. Stoner, @StockHollywood

Dallas, Texas

4.25.2011

Apr 26 - Tues. "Pair a dice"

Milestone LLC
  1. INVE - sideways with some perks and volume breakout, what I expect to happen this week.
  2. QPSA - 9.37 is first light bit of resistance, stock has ripped, I'll short there.
  3. WAVX - that 3.5 mark was pushed, obvious resistance, but should move sidewayz/then we get a nice up.
  4. LLEN - battled back to unch to close the day strong, could carry into tomorrow. 
  5. AVVC - looking to add on some sort of weakness. 1.2 is where alot got fills.
  6. ACAD - stock is breaking out of a long base, should continue to rocket. Whole #'s should bring about resistance.
  7. MELA - chart looks very nice, power mover set up. 4+ and its gone.
  8. JRJC - similar chart to QPSA, if you cant find shorts for one short the other.
  • VECO - VECO vaulted to an early after-hours high of 50.81 before dropping back to maintain still upside levels between 49.34 and 50.40 through the bulk of its evening action. A pre-market open Tuesday may have potential in the 49.25 to 50.25 range. VECO has recorded an earnings-driven after-hours gain in nine of the last 12 quarters tracked in our MT Pro database. 77.8% of the time (7 out of 9 times) the stock followed-through in the same direction by the close of the next day's regular session compared to the Extended Hours "effective close". When it followed-through, the price closed further in the same direction on average by 10.6% (in 7 events) from the "effective close". VECO's ability to add to evening upside moves in follow-on action would have us looking at long plays on the issue tomorrow. Early buyers may want to target possible entry points between 49.25 and 50, an area that could set up as a morning bottom support and possible see attempts to again break further north of 50.
  • ESRX - ESRX slumped from an early after-hours high of 56.10 to a first-half low of 49.89. It steadied between 52.57 and 50.55 through the late first-half and second-half of evening play. A pre-bell open Tuesday may have potential in the 52 to 51.20 range. We noted earlier today that shorts should be skeptical of any downside move this evening as the stock often sees its earnings-driven after-hours declines narrow or reverse direction in the following day's regular session. The stock has declined in response to earnings news 13 times, but has extended that move only 5 times, narrowing in the other eight events. The consistent narrowing trend in place on downside moves, combined with some strong upside momentum flowing into the shares tonight off the lows would have us looking at a potential long play on ESRX in morning trade. Early buyers may want to linger near the 50 to 51 range, levels where buy liquidity was aggressive tonight and where a potential near-term floor support could develop for pops back into the lower 50s.
  • NFLX - NFLX popped to an early evening high of 263 before quickly retreating into the red, sliding to a low of 237.75. The stock settled between 243.41 and 238 through the bulk of its evening action. A pre-market open Tuesday looks to have potential between 242 and 238. NFLX is showing a long-term tendency to widen its post-earnings share move between the sessions, doing so in 20 of the last 29 quarters for which we've tracked results (69% of the time). The near-term performance favors widening, seeing more-aggressive, same-direction trade in the following regular session in the last five quarters. Looking deeper into the performance data, NFLX has recorded an after-hours decline in 15 quarters, adding to its evening declines in next-day trade in 12 quarters (80% of the time). The strong tendency to add to earnings-driven evening declines, combined with the longer-term widening pattern in place, as well as some aggressive sell pressure recorded tonight, would have us looking at a short play on NFLX Tuesday morning. Early shorts may want to watch the 248.50 to 240 area, levels where sell momentum was strong tonight and where a potential near-term ceiling level could develop for further downside movement into the high- to mid-230s.