The Focus List Always Produces Trades
What Tuesday’s Action Tells
You
The market action was the hourglass turned
upside
down as the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed at 1210.41, +0.6% vs. -0.6% the
previous
day. The internals did the same as NYSE volume was 1.71 billion shares, the
volume ratio 67 and breadth +818, all essentially mirror images of Monday.
The
(
QQQQ |
Quote |
Chart |
News |
PowerRating) did the same reversing a -1.1% Monday to close at 37.63, +1.1%.
The
Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) was +0.6% to 10,830, and Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) +0.9% to
2071.
The semis, on an upgrade, pushed the
(
SMH |
Quote |
Chart |
News |
PowerRating) to 34.79, +2.3%. The XBD was
+1.6% as the hype picked up on how much the M&A activity will help
earnings.
The intraday highs bumped up against the high
end
of the range again for the SPX and Dow, and the herd is lined up to buy the
breakout, so says the media. This corner hopes that is the case as it will
be
another opportunity to scale up the sell process of reducing equity exposure
because it is getting very late in this bull cycle. The SPX continues to
have
negative divergences in the CMO 15 Oscillator, and this is not what you like
to
see with rising prices.
The game plan yesterday was to fade any SPX
early
rally to the triple top, and that happened on the 10:05 a.m. ET bar with a
Trap
Door short below 1210.83 on the 10:10 a.m. bar. The trade only carried down
to
1206.75 by the 1:25 p.m. bar. The SPX then traded up to 1212.25 by 3:30
p.m.,
closing at 1210.41. There were some better trades in stocks like
(
CAT |
Quote |
Chart |
News |
PowerRating)
which
opened in line with a Dynamite Triangle forming until the breakout above
95.17
on the 10:50 a.m. bar and making a quick run to 97.10 before any
retracement. If
you had continued to scroll the “Above the Line” focus list, you
found the
(
IR |
Quote |
Chart |
News |
PowerRating)
Flip Top with the breakout above 84.48 trading up to 85.84. It
wasn’t a
great trading day, but there were things to do other than the major indices,
as
is always the case if you have done the prior work with your focus
list.
Have a good trading day,
Kevin Haggerty
P.S. I will be
referring to some charts here:
www.thechartstore.com in the future.
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