A Little Relief
We got a relief rally yesterday, with the semiconductor index [SOX>SOX] and the Morgan Stanley High-Tech Index [MSH>MSH] up the entire session and the [NDX>NDX] finishing up 35 points.
At 11:00 AM ET, the S&P 500 was up nine points and the Dow was up 57, but by noon they both had turned negative. Texas Instruments was a great Opening Reversal and IBM had an excellent entry (around 3:30 PM) at 127 5/8 and ran to 129 1/8. Save the five-minute charts for both these stocks.
A key point on IBM: It’s closing price didn’t show it moving that much, but its “travel range,” which I’ll discuss in my Five-week Day Trading Course, was over 18 points–13-14% on the day from the opening price of 127 1/2. There were opportunities in IBM throughout the day.
Both the Dow and S&P 500 managed to sneak across the finish line with nominal gains. There was definitely some money put to work on the buy side in the last half hour of trading. Around 3:30 PM, the up volume was 303 million and the down volume 331 million; at 4:00 PM, up volume was 402 million up and down volume was 344 million. Hopefully we’ll get some follow-through.
Around 8:30 AM, the futures are off three points and the NASDAQ generals are down slightly. Looks like it could be quiet-to-down on the opening. When they can’t take them down any further, you’ll start to see some opportunities (snap-backs, etc.) if they take it out that way.
Target Stocks Of The Day
| Program Trading Numbers | ||
| Buy | Sell | Fair Value |
| 11.15 | 7.40 | 9.30 |
Caterpillar [CAT>CAT], Valuevision [VVTV>VVTV], IBM [IBM>IBM], VISX [VISX>VISX] and Go2Net [GNET>GNET]
Editor’s note: If you want to learn more about Kevin Haggerty’s trading strategies, click on the link below to go to his new series of tutorial articles.