Defensive Focus List Stocks Bought By Generals
Kevin Haggerty is
the former head of trading for Fidelity Capital Markets. His column is
intended for more advanced traders. Kevin has trained thousands of traders
over the past decade. If you would like to be trained by him,
ext. 1
The SPX
(
SPX |
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PowerRating) hit its intraday low of 1215.93
on the 9:40 a.m. ET bar, then rallied to 1222.64 and closed at 1219.02, -0.1% on
the day. When the SPX took out Wednesday’s 1218.07 low, it set up an RST long
entry above 1216.86 which made a +5.5 point advance from entry level to the
intraday high of 1222.64. The
(
DIA |
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PowerRating) was better, in that it gave you an RST
buy above 105.50, then an RST cover and short below 106.08, which declined to
105.65 before closing at 105.76. The intraday low was 105.37 vs. the 200-day SMA
of 105.33. There was also significant other sequence that those of you who have
my trading strategies are aware of.
NYSE volume was 1.39 billion shares with a volume
ratio of 35 and breadth -736, both weaker than the Dow 10,555, +0.4%, and SPX
-0.1%. The
(
QQQQ |
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PowerRating), 38.84, was -0.5% and the Nasdaq
(
COMP |
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PowerRating), 2136,
-0.4%. The 4 MA of the volume ratio is now 39 and 4 MA of breadth -442 and the 5
RSI 44, so it is moving toward the short-term oversold zone, but is not there
yet.
Keeping you up on the "Casino" games, the
(
SMH |
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PowerRating) gave us an alternating ninth day at -0.9% and the net net of the nine
days is now just -0.2%. There has been a lot of money spent both ways with
absolutely no net progress, but lots of hype by the media. None of the other
major sectors stood out yesterday relative to major index price movement, but
the
(
TLT |
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PowerRating) was +0.7% to 93.79, while crude oil was -0.08% to 63.77 with the
US Dollar ($US) continuing a small oversold reflex to 88.59, +0.6%. It looks
like it has some more downside to about the 85 zone after this bounce.
One common thread yesterday was the
outperformance by some of the major defensive issues, like
(
MO |
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PowerRating) +3.7%,
(
G |
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PowerRating)
+1.8%,
(
CL |
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PowerRating) +1.6%,
(
PG |
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Chart |
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PowerRating) +1.4% and
(
JNJ |
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News |
PowerRating) +1.2%. The same is true for
medical stocks like
(
MDT |
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PowerRating) +2.3%,
(
FRX |
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PowerRating) +1.1% and
(
WYE |
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Chart |
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PowerRating) +1.0%. If
this is where the Generals are playing now, then look for those good intraday
opportunities in these "Above the Line" stocks.
This is being done Thursday night for Friday.
Have a good trading day,
Kevin Haggerty