9:45 Start
It was
a power day led by techs and telecom, with
all major sectors green. NYSE volume was less than I like to see on a power day
at 1.35 billion, which is about 10% above average. The volume ratio was
excellent at 86, with 1.2 billion up and 185 million down, while breadth was
extremely positive at +1320. The Nasdaq volume was average at 1.7 billion, but
the volume ratio was 89 and breadth +1514.
The
(
$XTC.X |
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telecom index, with the wireless stocks leading, exploded +10.2%, with Nextel
(
NXTL |
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(
WCOM |
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+23%. Hello, shorts. The
(
$NWX.X |
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+6.7%, and the all-important
(
$SOX.X |
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from Novellus
(
NVLS |
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Instruments
(
TXN |
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INTC |
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leading the way. I should clarify that and say the perceived good news
because none of us know whether the hell it is or not, based on how the game is
now played with reporting, guidance, and meeting artificially reduced estimates.
The financials were a touch better than
the SPX
(
$SPX.X |
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(
$XBD.X |
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(
$BKX.X |
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+2.7%. The cyclical index
(
$CYC.X |
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it was across the board.
The major indices were
all strong, led by the NDX
(
$NDX.X |
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(
$COMPX |
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+3.5%. The SPX
(
$SPX.X |
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(
$INDU |
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major indices’ and semis’ five-minute charts were gap up big and then Slim Jims
at the highs all day. No pullback, which is interesting to me, as it probably
means shorts are caught again competing with the real Generals putting some
monies to work.
The daily wide-range bar
up for the SOX yesterday reversed the last 10 highs and 16 of the last 17
closes, breaking out of a flag pattern after the pullback to the 200. Same
pattern as the
(
$DJX.X |
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week’s text.
Stocks
Today
First, I must say for
today leave the continuation long entries above yesterday’s gapped highs to the
Generals and hedge funds that must put money to work. As a trader with a finite
amount of capital, play those gap stocks, like
(
KLAC |
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(
NVLS |
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of the wireless and telecom stocks that are taking off, on intraday pullback
setups only.
I would also say to you
to let the first three five-minute bars play out before any entry, unless you
have a daily chart setup that the herd didn’t get to yesterday on a gap basis.
We did just fine yesterday on those stock setups where the pigs weren’t at the
trough yet.
For today, there’s no
sense mentioning the semis. You look at any ones you want of the major semis.
You have the sheet. You all saw them all yesterday. Play them only on intraday
pullbacks, and also stocks like
(
QCOM |
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PowerRating) and the wireless sector the same
way.
Daily chart stock setups
that we might get a shot to get entry in today on a continuation basis are
(
PCAR |
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(
USAI |
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(
STT |
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(
DOV |
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(
RSH |
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(
FDC |
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(
FLR |
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WHR |
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(
GWW |
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(
AL |
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PowerRating). Also,
(
APD |
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PowerRating) and
(
UPS |
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PowerRating).
Have a good trading day,
and don’t get too carried away.
Five-minute chart of
Tuesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Tuesday’s NYSE TICKS
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