An Excellent Day For Daytraders
What Monday’s Action Tells
You
The market action yesterday said nothing
regarding the major indices. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed at 1135.26,
+0.4%,
the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) was flat at 10,499, +0.1%, with the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
minus just 3 points and the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s closing at 36.97, -0.3%. It was just
chop. NYSE volume was the lightest of the past five days at 1.58 billion
shares,
while the 4 MA is 43. Breadth yesterday was +281, with the 4 MA at -480. The
Generals didn’t really show up yesterday to put any new money to work on the
first day of the new month.
In the primary sectors, the three that were up
better than 1.0% were not the market leaders needed to try and get through the
1150 – 1160 retracement zone. The
(
BBH |
Quote |
Chart |
News |
PowerRating) was +1.9%, while the
(
PPH |
Quote |
Chart |
News |
PowerRating) and
(
OIH |
Quote |
Chart |
News |
PowerRating) were each +1.2%.
| size=2> |
Tuesday
1/27 |
Wednesday
1/28 |
Thursday
1/29 |
Friday
1/30 |
Monday
2/2 |
| color=#0000ff>Index | |||||
| color=#0000ff>SPX | |||||
| color=#0000ff>High |
1155.37
|
1149.14
|
1134.39
|
1134.17
|
1142.58
|
| color=#0000ff>Low |
1144.05
|
1126.50
|
1122.38
|
1127.73
|
1127.87
|
| color=#0000ff>Close |
1144.05
|
1128.48
|
1133.18
|
1131.12
|
1135.26
|
| color=#0000ff>% |
-1.0
|
-1.4
|
+0.4
|
-0.3
|
+0.4
|
| color=#0000ff>Range |
11.3
|
22.6
|
12
|
6.4
|
14.7
|
| color=#0000ff>% Range |
0
|
9
|
95
|
53
|
50
|
| color=#0000ff>INDU |
10609
|
10468
|
10507
|
10489
|
10499
|
| color=#0000ff>% |
-0.9
|
-1.3
|
+0.4
|
-0.2
|
+0.1
|
| color=#0000ff>Nasdaq |
2116
|
2077
|
2068
|
2066
|
2063
|
| color=#0000ff>% |
-1.8
|
-1.8
|
-0.6
|
-0.1
|
-0.1
|
| color=#0000ff>QQQ |
37.75
|
37.11
|
37.12
|
37.08
|
36.97
|
| color=#0000ff>% |
-2.2
|
-1.7
|
+.03
|
-0.4
|
-0.3
|
| color=#0000ff>NYSE |
|
|
|
|
|
| color=#0000ff>T. VOL |
1.62
|
1.81
|
1.92
|
1.64
|
1.58
|
| color=#0000ff>U. VOL |
630
|
383
|
801
|
866
|
880
|
| color=#0000ff>D. VOL |
983
|
1.45
|
1082
|
744
|
657
|
| color=#0000ff>VR |
39
|
21
|
42
|
54
|
57
|
| color=#0000ff>4 MA |
50
|
44
|
43
|
39
|
43
|
| color=#0000ff>5 RSI |
55
|
36
|
45
|
40
|
48
|
| color=#0000ff>ADV |
1421
|
943
|
1209
|
1701
|
1787
|
| color=#0000ff>DEC |
1878
|
2410
|
2098
|
1546
|
1506
|
| color=#0000ff>A-D |
-457
|
-1467
|
-889
|
+155
|
+281
|
| color=#0000ff>4 MA |
+55
|
-347
|
-595
|
-655
|
-480
|
| color=#0000ff>SECTORS |
|
|
|
|
|
| color=#0000ff>SMH |
-3.4
|
-0.6
|
-0.3
|
+0.3
|
-1.4
|
| color=#0000ff>BKX |
-0.8
|
-1.7
|
+0.3
|
+.08
|
+.05
|
| color=#0000ff>XBD |
-1.5
|
-3.3
|
+0.7
|
+0.5
|
-0.2
|
| color=#0000ff>RTH |
-0.7
|
-2.5
|
+1.1
|
-.04
|
+0.3
|
| color=#0000ff>CYC |
-0.9
|
-1.9
|
-1.0
|
-0.3
|
-0.5
|
| color=#0000ff>PPH |
-0.7
|
-1.0
|
+1.1
|
-0.8
|
+1.2
|
| color=#0000ff>OIH |
-0.2
|
-0.5
|
-0.3
|
-0.9
|
+1.2
|
| color=#0000ff>BBH |
-1.6
|
-0.9
|
+1.5
|
-1.3
|
+1.9
|
| color=#0000ff>TLT |
+0.6
|
-1.0
|
-0.2
|
+0.7
|
-0.3
|
| color=#0000ff>XAU |
+1.9
|
-2.7
|
-2.4
|
+1.6
|
+0.5
|
^next^
There was no real thread in the S&P 500 stocks
yesterday that traded 50% or more than their average volume, while some of the
financials traded much less than their average volume, like
(
BSC |
Quote |
Chart |
News |
PowerRating),
(
JPM |
Quote |
Chart |
News |
PowerRating)
and
(
BAC |
Quote |
Chart |
News |
PowerRating). The
(
SMH |
Quote |
Chart |
News |
PowerRating) ended -1.4%, with stocks like
(
TER |
Quote |
Chart |
News |
PowerRating) -1.8% on
only 85% of its average volume,
(
TXN |
Quote |
Chart |
News |
PowerRating) -1.4% on 84% of its average volume,
and
(
MU |
Quote |
Chart |
News |
PowerRating), which has been strong as of late, -0.7% on 86% of its average volume.
The interesting semis to me right here are
(
INTC |
Quote |
Chart |
News |
PowerRating),
which closed at 30.32, back to the bottom of its range for the past three-and-a-half
months. The two high closes were 34.12 and 34.24, with the low close at 30.17,
and the intraday low of the range 29.71. There is momentum line support at 29.17.
The SMH closed at 41.41 vs. the 89-day EMA of 40.81, with the low close of the
same period range at 39.
(
MCHP |
Quote |
Chart |
News |
PowerRating) was -1.7% yesterday on 44% more than its
average volume, closing at 28.31, right at its 200-day EMA of 28.57, which is
also the top of the four-and-a-half-month trading range it broke out of on Oct.
28, so it is obviously a key focus in case the Generals reload at this level.
Another semi that has retraced to a zone of interest is
(
KLAC |
Quote |
Chart |
News |
PowerRating), which closed
yesterday at 55.26 and below all of its 20-, 50- and 89-day EMAs, but above
its 53.15 200-day EMA.
For Active
Traders
In spite of the flat closes for the major
indices
yesterday, it was an excellent day for daytraders in the futures,
(
DIA |
Quote |
Chart |
News |
PowerRating)s
or
(
SPY |
Quote |
Chart |
News |
PowerRating)s. Travel range was good with the SPX trading up to 1135.07 by 9:40
a.m. ET, down to 1127.87 by 10:55 a.m., then a great move on a re-cross of
the
20-day EMA of 1129.54 to 1142.58, where a Slim Jim formed with an 1140 low
from
12:45 p.m. to 3:05 p.m. before the knife down to 1130.94, then the 1135.26
close. The SPX didn’t take out the previous low, nor did the E-mini, hitting
1126.50 vs. Friday’s 1126 low.
From my perspective, the Dow was the more
defined
setup as it hit a 10,435 low, which is near the bottom end of its range this
year. It reversed Friday’s low of 10,439.41 and rallied about 134 points to
an
intraday high of 10,569 before the last-hour knife down and closed at
10,499.
Because the Dow took out Friday’s low, it became an RST setup with entry
above
10,444.
Today’s
Action
The Dow closed at 10,499.18, right at its 20-day
EMA of 10,499.46, so there is a fence to play today. The QQQs closed at 36.97,
above its 50-day EMA of 36.63 just above the high end of its previous four-month
trading range above 36, so it obviously remains a focus if it sells down on
the early red I see in the futures.
Have a good trading day,
Kevin Haggerty
