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Early Bird Trading: Adobe, Blackboard, Charles Schwab


Let the euphoria calm and look to plan your attack in a strategic and prudent manner.


Good morning Minyans.

We have an exciting start to the day out there in Stock Land. It sounds a bit backwards, but I am never too concerned with the actual earnings report of a company. However I am very interested in the reaction. It's stock holders' opinions that matter and this is what I will be watching as we move through the day.

While the Yahoo (YHOO) reaction was very impressive, I am much more interested in Intel (INTC) as the after hours action sent the stock above triple top resistance point of $26.58 and is set to open above there today. This is a critical break for Intel that if it holds, in my opinion, must be owned. I would not jump the gun and chase the gap with a full position, rather I would see how it handles the open, consider edging into put a few shares on the radar on the first fade, and then wait a few more days to make sure the break holds.

Over the last few days I have grown rather cautious so I come into today underinvested which is never easy when the market gaps on good news. Rather than let it bother me, I am always confident I can catch up quickly as long as I remain calm, patient and above all else, look for prudent entries. There are several stocks I am watching over the next few days, that I will update accordingly.

  • Adobe Systems (ADBE) broke out to new highs last week and has taken a brief break from its run over the last few days. The stock has held very well considering the market shake and looks ready to move higher. I am sure it will gap up slightly in the open and I will be watching for a dip to start shares. Big Cap tech in my opinion will be the place to be as managers seek to play catch up to the averages as we wind out 2007.

  • A name I put a few shares on the radar yesterday, and am now slightly underwater is Blackboard (BBBB).I like the action I have been seeing here since the stock broke out to new highs after repairing damage from a secondary offering. I suspect that this action is setting up for another push higher as a pre-earnings play. I have started to average in and would consider doing so as long as it moves within the $46-$47 range. A break over $47.85 should really get it moving. I won't hold a full position through the earnings report, which will be in early November so stay tuned on this one.

  • Last but not least, I like Charles Schwab (SCHW) quite a bit as the company recently reported very strong earnings and revenue growth and technically the stock is quite attractive after having formed a double bottom in August and September and flirting with new highs now. I am going to start to average in here with eyes on a final add over a break out to new highs above $22.60.

The market will open hot today, however remain patient and I wouldn't be too quick to chase the early action. Let the euphoria calm and look to plan your attack in a strategic and prudent manner.

Go get 'em today Minyans.

Position in INTC, BBBB

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