2 Stocks Move Back Onto The Focus List
What Wednesday’s Action Tells You
The exits got crowded yesterday with a tech air
pocket. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) opened down and hit Trap
Door lows around 10:05 a.m. ET, rallied into 10:30, then went sideways from
there until 2:00 p.m., where selling took the E-mini and SPY to new intraday
lows. The SPX closed at 1126.53, -0.8%, the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) 10,471, -0.3%,
heading back down to the bottom of this year’s range. The tech air pocket had
the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) -2.5% to 2014, and the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s 36.34, -1.6%.
NYSE volume was 1.62 billion, which is above
the
previous two plus days for the market. The volume ratio was 26 with almost
1.2
billion down. The 5 RSI is getting to a friendly zone for a reflex, closing
yesterday at 35. The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s are already there with the 5 RSI at 17. The
breadth was negative at -1467, and the 4 MA still on the negative side for
the
past six days at -236. To this point, the 4 MA volume ratio at 48, meaning
it’s
better than breadth, as the universe of stocks get smaller as the trading
tree
goes higher.
The primary sectors were led down by the
(
SMH |
Quote |
Chart |
News |
PowerRating)s
at -2.7%, with
(
INTC |
Quote |
Chart |
News |
PowerRating) -4.3% on +52% more than its average volume. Many
of the other semis that declined did not have the same volume increase. The
brokers followed at -1.9%, with the
(
CYC |
Quote |
Chart |
News |
PowerRating) -1.1% and the
(
BBH |
Quote |
Chart |
News |
PowerRating)s 1.6%.
| size=2> |
Thursday
1/29 |
Friday
1/30 |
Monday
2/2 |
Tuesday
2/3 |
Wednesday
2/4 |
| color=#0000ff>Index | |||||
| color=#0000ff>SPX | |||||
| color=#0000ff>High |
1134.39
|
1134.17
|
1142.58
|
1137.44
|
1136.03
|
| color=#0000ff>Low |
1122.38
|
1127.73
|
1127.87
|
1131.33
|
1124.74
|
| color=#0000ff>Close |
1133.18
|
1131.12
|
1135.26
|
1136.03
|
1126.53
|
| color=#0000ff>% |
+0.4
|
-0.3
|
+0.4
|
+.07
|
-0.8
|
| color=#0000ff>Range |
12
|
6.4
|
14.7
|
6.1
|
11.3
|
| color=#0000ff>% Range |
95
|
53
|
50
|
77
|
16
|
| color=#0000ff>INDU |
10507
|
10489
|
10499
|
10505
|
10471
|
| color=#0000ff>% |
+0.4
|
-0.2
|
+0.1
|
+.06
|
-0.3
|
| color=#0000ff>Nasdaq |
2068
|
2066
|
2063
|
2066
|
2014
|
| color=#0000ff>% |
-0.6
|
-0.1
|
-0.1
|
+0.1
|
-2.5
|
| color=#0000ff>QQQ |
37.12
|
37.08
|
36.97
|
36.95
|
36.34
|
| color=#0000ff>% |
+.03
|
-0.4
|
-0.3
|
-.05
|
-1.6
|
| color=#0000ff>NYSE |
|
|
|
|
|
| color=#0000ff>T. VOL |
1.92
|
1.64
|
1.58
|
1.48
|
1.62
|
| color=#0000ff>U. VOL |
801
|
866
|
880
|
644
|
422
|
| color=#0000ff>D. VOL |
1082
|
744
|
657
|
824
|
1.18
|
| color=#0000ff>VR |
42
|
54
|
57
|
56
|
26
|
| color=#0000ff>4 MA |
43
|
39
|
43
|
52
|
48
|
| color=#0000ff>5 RSI |
45
|
40
|
48
|
50
|
35
|
| color=#0000ff>ADV |
1209
|
1701
|
1787
|
1691
|
895
|
| color=#0000ff>DEC |
2098
|
1546
|
1506
|
1603
|
2362
|
| color=#0000ff>A-D |
-889
|
+155
|
+281
|
+88
|
-1467
|
| color=#0000ff>4 MA |
-595
|
-655
|
-480
|
-91
|
-236
|
| color=#0000ff>SECTORS |
|
|
|
|
|
| color=#0000ff>SMH |
-0.3
|
+0.3
|
-1.4
|
+0.9
|
-2.7
|
| color=#0000ff>BKX |
+0.3
|
+.08
|
+.05
|
-0.2
|
-0.5
|
| color=#0000ff>XBD |
+0.7
|
+0.5
|
-0.2
|
+0.1
|
-1.9
|
| color=#0000ff>RTH |
+1.1
|
-.04
|
+0.3
|
-0.1
|
+0.6
|
| color=#0000ff>CYC |
-1.0
|
-0.3
|
-0.5
|
-0.7
|
-1.1
|
| color=#0000ff>PPH |
+1.1
|
-0.8
|
+1.2
|
+0.8
|
+0.8
|
| color=#0000ff>OIH |
-0.3
|
-0.9
|
+1.2
|
-0.6
|
-0.4
|
| color=#0000ff>BBH |
+1.5
|
-1.3
|
+1.9
|
+0.4
|
-1.6
|
| color=#0000ff>TLT |
-0.2
|
+0.7
|
-0.3
|
+0.5
|
-0.3
|
| color=#0000ff>XAU |
-2.4
|
+1.6
|
+0.5
|
-0.1
|
-1.5
|
^next^
For Active
Traders
The herd took
(
CSCO |
Quote |
Chart |
News |
PowerRating) right back to the recent
breakout zone, closing at 24.08, -8.8%, on +245% more than its average volume.
CSCO had run +22.5% to 29.39 following the Slim
Jim breakout (daily chart), and after yesterday, has given it all back in
11 days. The 89-day EMA is 23.77, with the 200-day EMA down at 21.06. CSCO obviously
goes back on the intraday focus list because the herd’s initial emotion always
gets ahead of price reality, and that is daytrader opportunity.
The contra move in the SPY yesterday was
after
the 10:05 a.m. low and ran about .50 points from entry before trading
sideways
until 2:00 p.m. when it traded below the 113.40 low-range level down to
112.79
before a reflex to 113.37 by 3:10 p.m. and back down to 112.85. That’s lots
of
noise. The E-mini had only made a contra move of about 4 points, rallying to
1029 before declining.
Today’s
Action
The early futures are green, and if they
hold, it
takes away the early opportunity for Trap Door long entries from any
“have to
get out” retail order flow on the opening. The focus today will be on
the QQQs
as they are back to their breakout levels just above 36. The QQQs have
declined
6.8% since Jan. 19.
Some semis, like KLAC and AMAT, are getting back
around their 200-day EMA zones, so they move back onto the focus list, along
with INTC which is already there and back to its “fill or kill” zone.
Tuesday’s wide-range bar and +3.6% day on 63 million shares was eclipsed yesterday
with INTC -4.3% on 79 million shares. The intraday lows of the four-month trading
range are 29.66 and 29.71, with 29.36 the intraday low of the previous trading
range from Aug. 22 to Oct. 3.
Have a good trading day,
Kevin Haggerty
P.S. You can finally learn
what traders have been asking me to teach them for years—