Wednesday Evening

Baron swam off when he saw the camera coming :)

Wednesday Afternoon

S&P futures bulls are pushing back into the 1400 level after a brief dip this morning. Short term indicators are getting worked off already.... although they look like they still have some room for more selling. Intraday volume is suggesting we may be approaching the high of the day here around 1400-1401 (1404-1405 SPX). Gold and the Euro are backing off a little, which also looks supportive of chop around action for the remainder of the day session.

Wednesday Morning

Gator's Chart of the Day: JDSU

We are late to this trade but it still has potential.  JDSU reports after market on Aug 14th and I would not want to hold through that event.  I've seen them disappoint and it's not pretty.  They have a good balance sheet and the P/E is a reasonable 13.  They have a good piece of the internet growth business and that is not going to slow with the continuing demands for bandwidth.

The Trade
Ideally we will see a small pullback to the 50 day and then a bounce that should be bought.  The trade will last a week at most so the position should be built as quickly as is practical.  Don't force it but this will necessarily be aggressive.  Assuming the entry is near 10 a stop just below the 20 day should keep the risk under 6% and with a target of 11.60ish (200 day) the risk/reward is not as sweet as I like.  Finviz has a target price of 14.03 but I doubt that level is reached in this time frame.