If You Scroll, You'll Find Stocks Like These

It was the smallest daily range so far this week for the SPX ($SPX.X | Quote | Chart | News | PowerRating) at 7.4 points as the index was almost unchanged at just +0.48 to 1174.55. The Nasdaq ($COMPQ | Quote | Chart | News | PowerRating) gained a point to 2047, while the (QQQQ | Quote | Chart | News | PowerRating) lost a nickel to 37.10. The Dow ($INDU | Quote | Chart | News | PowerRating), led by (CAT | Quote | Chart | News | PowerRating) -5.1% and (SBC | Quote | Chart | News | PowerRating) -3.7% (with the deal announced), closed at 10,467, -0.3%. NYSE volume was 1.6 billion shares, the volume ratio 58 and breadth +303.

In the primary sectors, it was energy up again, with the (OIH | Quote | Chart | News | PowerRating) +1.1% for the 11th day up out of the past 13, and it has been a daytrader's windfall in this "Above the Line" sector, while the major indices have declined.

The (SMH | Quote | Chart | News | PowerRating) made it three in a row at +0.7% and +5.0% for three days. That same 5.0% in the SPX would have taken it above 1220, and the media would have gotten their tongues back. But I have news for you:  That is a good reflex off a key price zone which was anticipated by savvy sequence traders, and that is all that matters.

It was an unusual day for those of you who have learned to trade the RST because there were three of them yesterday, and all three trends in the ESH5 were caught with entry at the lowest common denominator. There is no need to go over the numbers because they are obvious to RST traders.

There were some no-brainers in energy stocks like (SUN | Quote | Chart | News | PowerRating), which was a simple Opening Reversal above 85.60 that ran +1.6% in just 20 minutes. (APA | Quote | Chart | News | PowerRating) had the same Opening Reversal and also above the previous day's high, which was a new high breakout. This trade ran +2.7% to 54.68 from the 53.25 entry level. These were entries on the 9:45 a.m. ET bars and emanated from excellent "Above the Line" daily chart setups. If you scroll them, you will find them. (VLO | Quote | Chart | News | PowerRating), +3.1%, had a similar trade setup.

The (SPY | Quote | Chart | News | PowerRating) closed at 117.43 with initial resistance on this fourth day off the 116.37 low at 118 and 118.15. It has been three days up in price on declining SPY volume of 68.3 million, 57.4 million and 55.2 million yesterday. That is never a positive. Money makes stocks go up, but the Generals must also have the desire to use it.

This is being done Thursday night for Friday.

Have a good trading day and a great weekend,

Kevin Haggerty