By The Numbers

• January 24, 2002
• Kevin Haggerty

We got
the anticipated action with entries in
many of yesterday’s stocks, and also good moves in the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s,
(
SMH |
Quote |
Chart |
News |
PowerRating)s
and
(
SWH |
Quote |
Chart |
News |
PowerRating)s. After the early opening enthusiasm, there was a pullback in most
of the selected trade ideas, and then the rally.
(
BRCD |
Quote |
Chart |
News |
PowerRating),
(
GS |
Quote |
Chart |
News |
PowerRating) and
especially
(
KLAC |
Quote |
Chart |
News |
PowerRating) provided excellent trades from the 200-day pivot zone.

The oversold techs led
the bounce, along with the
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), which rose 5.4%. The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
gained 4.3%, and for seminar attendees, you are looking at the pattern once
again. The
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) advanced +4.1%, as many of those stocks were at the
top end of the stock screens in volume and price the previous day. Both
(
GILD |
Quote |
Chart |
News |
PowerRating) and
(
TKTX |
Quote |
Chart |
News |
PowerRating) did well for us. All
of the major sectors, except gold, finished green, along with all the major
indices.

NYSE volume rose to 1.4
billion, with a volume ratio of 70, which is what you want to see coming off the
short-term oversold. Breadth was positive at +797. There were many
top-of-the-range closes on increases above the 30-day average volume. That means
only that we are dressed and ready for continuation on the train if that’s what
the Generals decide to do today. Nothing more profound than that. A short-term
oversold trading bounce is just that, nothing more. If
you read the news and act after it, you will end up selling the newspapers
rather than trading. 

Stocks
Today

These are all
above-the-line stocks that set up on the daily charts, so you get that trading
plan ready if they show up again today:
(
KRON |
Quote |
Chart |
News |
PowerRating),
(
SEPR |
Quote |
Chart |
News |
PowerRating),
(
TKTX |
Quote |
Chart |
News |
PowerRating),
(
IDPH |
Quote |
Chart |
News |
PowerRating) and
(
GILD |
Quote |
Chart |
News |
PowerRating).

In the semis:
(
BRKS |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
NVLS |
Quote |
Chart |
News |
PowerRating) and
(
MCHP |
Quote |
Chart |
News |
PowerRating) — those three all have
the same pattern as the SOX — and also
(
NVDA |
Quote |
Chart |
News |
PowerRating) with a narrow-range
pattern. 

Other stocks:
(
NETA |
Quote |
Chart |
News |
PowerRating),
(
PCAR |
Quote |
Chart |
News |
PowerRating),
(
CDWC |
Quote |
Chart |
News |
PowerRating),
(
USAI |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
FDC |
Quote |
Chart |
News |
PowerRating),
(
JEF |
Quote |
Chart |
News |
PowerRating),
(
SEBL |
Quote |
Chart |
News |
PowerRating),
(
BBY |
Quote |
Chart |
News |
PowerRating),
(
KSS |
Quote |
Chart |
News |
PowerRating),
(
IGT |
Quote |
Chart |
News |
PowerRating),
(
OSI |
Quote |
Chart |
News |
PowerRating) and
(
YUM |
Quote |
Chart |
News |
PowerRating).

Also, if they come for
the energies again, look at
(
APA |
Quote |
Chart |
News |
PowerRating) and
(
SLB |
Quote |
Chart |
News |
PowerRating).

On the oversold stocks
that are in the 200-day moving average zone that didn’t move yesterday, focus
and look for an intraday reflex on
(
IBM |
Quote |
Chart |
News |
PowerRating). 

Have a good trading day.

Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs

Five-minute chart of
Wednesday’s NYSE TICKS