Some Names — And A Sector — To Watch
The
flex from the .50 retracement zone for the major indices
continued yesterday, as the SPX
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$SPX.X |
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day and right at the head-and-shoulder neckline to the 896 previous swing point
high. Overall NYSE volume was 1.4 billion, a volume ratio of 71, and breadth
+1138.
The early S&P futures are
up 11 points to 868 as I do this at 6:45 a.m. ET, so if it holds, we might see
the SPX revisit that 870 – 875 resistance this morning. The Dow
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gained 1.0% yesterday, and the Nasdaq
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$COMPQ |
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sector, led by the banks and brokers, had a green day, both up over 2.0%, and
there were similar gains in the energy sector, followed by drugs.
The
(
SMH |
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getting sold off the previous day to a 23.09 close, had an intraday move up to a
23.65 high, then faded to close at 23.31. The
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SPY |
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Pullback trade that carried up to an 86.39 intraday high, closing at 86.31,
again, right at the head-and-shoulder neckline you had in the charts yesterday.
In spite of the extremes
in the major indices, which are now still below declining longer-term moving
averages, there have been daily trading opportunities in many stocks that are
trading above their rising moving averages in spite of the selloff in the major
indices. When and if the market gets into some kind of trend up move, these
stocks that have been outperforming should do well, and many will lead. Just a
few examples to keep on your daily scrolling list for intraday setups only are
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VAR |
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PTEN |
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BDX |
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CAT |
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SLM |
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STJ |
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APOL |
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GDW |
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BLL |
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NBR |
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APA |
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LEH |
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EBAY |
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A sector that is set up
in a consolidation right above its 200-day EMA and above all the lines is the
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BBH |
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next price objective would be 112.
(
AMGN |
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(
GENZ |
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that have been outperforming and trading above the lines, so they should be
scrolled each day also. This is not an absolute list, it is just to get you
thinking about daytrading opportunities in stocks that are outperforming the
major indices. Nothing more.
On any rally back above
870 on the SPX, I will look to put on more synthetic straddles to take advantage
of the certain news swings on Iraq, which will provide the necessary price
swings. It also enables me to walk in each morning in good position to play any
significant emotional gap openings and not care in which direction. My primary
focus on significant weakness will again be the semiconductors.
Have a good trading day.
Five-minute chart of
Tuesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Tuesday’s NYSE TICKS