Hot, Hot, Hot

  • April 18, 2001
  • Duke Heberlein

Keeping an eye on the sector watches in the TradersWire
will give you a jump on where the action is in the different
groups. That was plainly evident this morning as the Semiconductor Index
(
SOX.X |
Quote |
Chart |
News |
PowerRating)
was rocking even before Mr. G and his boyz played the interest rate card.
This knowledge allowed astute observers to uncover several intraday
opportunities in the semis.

 

10:00:57

Sectors In Motion

Strongest Sectors – semiconductors (SOX)
+8.14%, Internets (GIN)
+5.93%, networking (NWX)
+5.35%, and computer technology (XCI)
+5.56%. 

Weakest Sectors - gold and silver (XAU)
-1.97%, oil services (OSX)
-1.81%, and the oil index (OIX)
-1.50%.

10:42:06

Chipping Away

Chips continue to drive this rally with the semiconductor index (SOX)
now up 10% and trading on the top of its range. Two scenarios could play out
here. One, the SOX will pullback from here, similar to four days ago when it was
up by 10%. Alternatively, significant resistance resides at 640-642 on the SOX,
from where we could see a pullback. The SOX currently is trading at 630. Intel (INTC),
+3.26 at 29.30, KLA-Tencor (KLAC)
,+4.86 at 47.58, and Xilinx (XLNX),
+4.70 at 45.65, continue to lead the way on the SOX with all three stocks
trading in the top 10% of their ranges.

 

Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating) ran up more than 4 points out of a
pullback after the second post.

 

Ditto for KLA-Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating) out of a Slim Jim.

 

Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) also had a jump out of a Slim Jim.

 

You might also want to take a look at the intraday chart of Advanced
Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating), National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating), and Analog Devices
(
ADI |
Quote |
Chart |
News |
PowerRating).
These issues also had nice runs out of good intraday pattern setups.

Use the sector watch to quickly identify where the hottest
groups are, and soon you too will be focusing on the hottest setups in the day’s
most sought after sectors, or when sellers rule, keying in on the weakest issues
to stalk for shorting candidates.

Until tomorrow,

Duke

P.S. Hope all of you enjoyed yesterday’s audio forum. Please
remember to send any questions you may have regarding the TradersWire,
the training forum or this column to dukeh@tradingmarkets.com.