Keep It Simple, Do The Work And You Will Profit

programs hit the floor at 2:30 p.m. ET, and the SPX
(
$SPX.X |
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PowerRating) made its

only move of the day, trading up about 10 points to the 1174.35 intraday high,

closing at 1173.80, +0.7%. After trading between 1164.60 – 1159.80 until 11:45

a.m., the SPX narrowed into a Slim Jim between 1163.84 – 1161.06, just above the

200-day EMA until the afternoon breakout. Daytraders in the futures and

(
SPY |
Quote |
Chart |
News |
PowerRating) made their day with the Slim Jim breakout above all of the 20, 60 and

240 EMAs (five-minute chart). Those of you who have my seminar material

understand the Slim Jim/program relationships from 2:00 p.m. on and are always

the Nasdaq
(
$COMPQ |
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News |
PowerRating) +0.5% and
(
QQQQ |
Quote |
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News |
PowerRating) +0.6% to 36.70. NYSE volume was

1.49 billion shares with the volume ratio 73 and breadth +830 vs. Monday’s

S&P 500 screen on my commentary page yesterday was the retail sector, and the

RTH was +1.5% on the day. The best move in the sector SPDRs was the XLE +1.8%

followed by the XLB +1.4%. The XLE has bounced +3.8% off the 40-week EMA in two

days, so daytraders either cashed out or carried some of the position overnight

into yesterday. Short-term position traders have moved stops to at least

breakeven. The
(
SMH |
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PowerRating) was +0.9% yesterday as volume dropped off again,

at primary resistance and longer-term moving averages, in addition to the Dow

pushing the 10,400 resistance again, could provide some good daytrading

opportunities, so be ready to play both directions and know that the Generals

can keep squeezing the shorts at this level. The Dow runs into its longer-term

moving averages (233/200) at 10,362 and 10,391. With the SPX closing at 1173.80

vs. the 1178.97 (05/09/05) high, the levels above that are the .50 retracement

common denominator stocks from both the “above the line” and “below the line”

lists. There are trades occurring every day from these lists, which are the

basis of our stock selection method. Did you catch the two Slim Jims yesterday

in
(
DGX |
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Chart |
News |
PowerRating)? If not, why not? Check the daily and five-minute charts for DGX

and see for yourself. If you were doing your work prior to yesterday’s action,

you could not have missed it. Don’t waste your time looking for the “Grail.”

P.S. I will be
referring to some charts here:
www.thechartstore.com in the future.