HPQ BIDU and some JAZZ

Well its slow out there. This AM there were only a few stocks with fresh news. JAZZ was one of them. HPQ and the proposal of them potentially buying PAR was another. So I traded both. As I write I am also short BIDU. Let me share my thinking.

JAZZ
From Briefing.com:

Jazz Pharma shares trading 30% lower following Friday’s announcement that FDA voted 20-2 that the benefit/risk balance did not support the approval of JZP-6 (10.23 )

JAZZ gapped down from a close near 10 with an open around 7.55. 7.55 was tested aggressively but never dropped the bid on the Level II. 7.75 became another huge level but then JAZZ held above. As I write I am long. But 8 is a level on our long term charts and intraday as there has been significant volume done here. I do not know if JAZZ will trade higher or lower. But I am long till below 7.69, I will add more if JAZZ holds above 8, and I will short if JAZZ holds below 7.55. You could make a strong argument that I should be short from 8 waiting for JAZZ to crack 7.55 and find lower ground.

BIDU

80 has been a technical support level in BIDU. Today it found its way below 80 and showed some weakness on the tape. I started a small short position. There was a Tier 1 downgrade with BIDU but no news I would classify as significant. I have set a stop for 80.35-80.50ish. I will probably need SPY to trade below 107.40 for this trade to work intraday.

HPQ

This was my Play of the Day. One of our young traders was chirping short HPQ below 40, with a stop above 40.10. I offered and was taken starting a short position at 39.98. He was still chirping :). I tried to add in front of the 39.80 intraday open resistance but was not filled. HPQ has reversed its intraday downtrend but with one lot I am holding since it is below 40. If I had gotten another lot at 39.77 I would have covered that 38.85 when it broke the intraday downtrend. 37.50 is a potential target for HPQ.