Again
I left
yesterday with the final move green, and
I walk in to a red screen this morning, with the S&Ps
(
SPH2 |
Quote |
Chart |
News |
PowerRating) down 8
points and Nasdaq futures
(
NDH2 |
Quote |
Chart |
News |
PowerRating) off 31 at 7:30 a.m. ET. These numbers
change quickly as the funny money pre-market futures action liquidity is
extremely thin and the underlying can be pushed around with ease. Great game.
We had the Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating)
CEO seeing the bottom last week, and now Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) forecasting lower
sales and expenditures. The game goes on.
The market gets over the
emotions each time, good or bad. That’s why I stress trading the overreaction so
much. If you are tuned in to the volatility bands, it has been a bonanza for the
last month. When so many empty suits get going during earnings season, it’s
worse than the political spin we get from the politicians that just blatantly
lie to us, but it’s okay because it’s just politics, right?
The major indices were
stopped at the key resistance levels in a short-term overbought condition before
this earnings spin started. We have yet to make any retest of the September low
in the major indices, so it certainly shouldn’t surprise you if negative
outlooks from companies create air pockets in certain stocks. We are looking at
1 2 3 lower tops in many stocks that are correcting much more than the indices
that have held price so far.
I will beat the dead
horse again and tell you to trade the money and not the news. The best way for a
trader to get through this earnings Mardi Gras for newscasters and empty suit
pundits is to just turn the TV off and don’t read the paper. Trade what you see
on the screen. You can then check the news after you have completed or gotten
stopped out on the trade. That is the purest way to trade: buying/selling
pressure. Try it. You will profit from it.
Stocks
Today
As I start this, the
S&Ps are now off 8 1/2 points, the Nasdaq -35, so you don’t need me to tell
you that volatility bands and Trap Doors are the first focus this morning. FYI:
For you RST players, congrats if you caught all three RSTs yesterday because you
caught all three moves, the sequence of which was up/down/up. It was a 7 pointer
on your five-minute chart. Bonanza.
Stocks that set up from
the daily charts last night at the 4:00 close are
(
BRKS |
Quote |
Chart |
News |
PowerRating),
(
CHRT |
Quote |
Chart |
News |
PowerRating),
(
SNPS |
Quote |
Chart |
News |
PowerRating),
(
MSFT |
Quote |
Chart |
News |
PowerRating) and
(
PSFT |
Quote |
Chart |
News |
PowerRating).
In the energies,
(
APA |
Quote |
Chart |
News |
PowerRating) and
(
APC |
Quote |
Chart |
News |
PowerRating).
Also,
(
IGT |
Quote |
Chart |
News |
PowerRating),
(
TGT |
Quote |
Chart |
News |
PowerRating),
(
WMT |
Quote |
Chart |
News |
PowerRating),
(
PX |
Quote |
Chart |
News |
PowerRating),
(
MEDQ |
Quote |
Chart |
News |
PowerRating),
(
SCIO |
Quote |
Chart |
News |
PowerRating),
(
GILD |
Quote |
Chart |
News |
PowerRating) and
(
OSI |
Quote |
Chart |
News |
PowerRating).
And in the financials,
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
STT |
Quote |
Chart |
News |
PowerRating),
(
C |
Quote |
Chart |
News |
PowerRating) and
(
AGE |
Quote |
Chart |
News |
PowerRating).
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
|
Additional
Below are the tools that Kevin uses on the TradingMarkets
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