Daily Chart Setups, Intraday Entry
A
narrow-range day for the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating)
closing at 1436.30, +2 points for the session and just below its 200-day EMA of
1443.32. Nothing good happens until the index can play above that average.
Institutional activity was strong, with total volume of 1.17 billion shares and
institutional blocks of 25,884. The volume ratio was 48, with 540 million up and
579 million down. Declines led advances by 292.
The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating)
also had a narrow-range day, closing at 3424, down 29 points or 0.8%. Some of
the chosen ones like
(
NTAP |
Quote |
Chart |
News |
PowerRating),
(
NEWP |
Quote |
Chart |
News |
PowerRating),
(
BRCD |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating) and
(
VTSS |
Quote |
Chart |
News |
PowerRating) gave you good continuation long entries, as did
(
ABGX |
Quote |
Chart |
News |
PowerRating) in the
biotechs.
A downgrade in
(
MU |
Quote |
Chart |
News |
PowerRating) by a
brokerage firm took that to another low, and stopped any further advance by
(
TXN |
Quote |
Chart |
News |
PowerRating). The cyclicals took the
day off after digesting a 10% gain, and the DIAs still sit below 108.Â
From a position standpoint,
I hope you have a trading plan to play the high-probability bullish seasonal
trend from the end of October through January and February. The probability for
gains during that timeframe is over 85% for the S&P 500, Dow and NDX 100.
With probabilities like that, it lends itself to some excellent options
strategies if you are not going outright long.
Stocks you had good long
entry in yesterday were all at or above their 50-day EMAs, so it should be no
surprise that they would make the better setups. Keep focusing on these strong
relative strength stocks. We have economic numbers this morning, so let’s hope
for some overreaction to set up some good early intraday trades on the strong RS
stocks.
face=”arial, helvetica”>(December Futures) | ||
Fair | size=2>Buy | size=2>Sell |
16.50 | 17.90 | 15.35 |
Pattern
Setups
If there is a down
reaction, you look for intraday entry patterns on stocks that have set up on the
daily charts. These stocks are as follows:
(
BRCD |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
VRSN |
Quote |
Chart |
News |
PowerRating),
(
VRTS |
Quote |
Chart |
News |
PowerRating) and
(
CMVT |
Quote |
Chart |
News |
PowerRating) (above Wednesday’s high).Â
Also take a look at
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
NEWP |
Quote |
Chart |
News |
PowerRating),
(
NTAP |
Quote |
Chart |
News |
PowerRating) (all three above Wednesday’s high) and
(
VTSS |
Quote |
Chart |
News |
PowerRating),
(
ITWO |
Quote |
Chart |
News |
PowerRating),
(
MXIM |
Quote |
Chart |
News |
PowerRating) and
(
SEPR |
Quote |
Chart |
News |
PowerRating).
Two brokerage stocks that
set up if they want to come back for them (although it looks like they’re
getting a little long in the tooth) are:
(
LEH |
Quote |
Chart |
News |
PowerRating) and
(
GS |
Quote |
Chart |
News |
PowerRating).
If they continue in the
drugs, look at
(
MRK |
Quote |
Chart |
News |
PowerRating),
(
LLY |
Quote |
Chart |
News |
PowerRating),
(
PFE |
Quote |
Chart |
News |
PowerRating) and
(
AHP |
Quote |
Chart |
News |
PowerRating).
In the financials, if they
wear that hat today, look at
(
PVN |
Quote |
Chart |
News |
PowerRating) and
(
FITB |
Quote |
Chart |
News |
PowerRating).
Have a good trading day — and be
thinking about what you’re going to do for that seasonal trade.
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