Energy Focus List Stocks Remain Major Profit Center For Traders

The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) traded in a narrow range

yesterday between 1204.26 – 1200.18 until an attempt at new highs was made on

the 1:45 p.m. ET bar. The SPX traded to 1207.53 before falling right back into

the day’s range and closing at 1203.91, +0.3%. The
(
SPY |
Quote |
Chart |
News |
PowerRating) hit a 121.20

intraday high vs. the 121.25 rally high, but closed at 120.86, which is a new

high close for the current rally attempt to make new highs and extend the fifth

wave of this bull market cycle.

NYSE volume was 1.32 billion shares, the volume

ratio 62 and breadth +723. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) finished at 10,548, +0.2%, the

to 37.58. The weakness in the QQQQ was primarily due to the semiconductors with

were green, led by the RTH, +2.1%, PPH, +0.8% and
(
OIH |
Quote |
Chart |
News |
PowerRating), +0.6%. The

(
TLT |
Quote |
Chart |
News |
PowerRating), the bond proxy, took another hit to 93.70, -0.7%, down from 97 in

seven days. The XAU was -1.5% and
(
NEM |
Quote |
Chart |
News |
PowerRating) -1.2% to 38.05. The Transportation

index ($TRAN) remains in the 200-day EMA zone and has done nothing much for the

past four days. It closed at 3511 vs. its 200-day EMA of 3497. The basic

materials sector SPDR, the XLB, closed at 28.36 with a 200-day EMA at 28.31 and

the inverted head-and-shoulder neckline breakout level above 28.50 – 28.60, so

up or down, traders will get some action from this zone.

The SMH trading range since July 2004 is easy

pickings for the Generals to take it out of the triple top around 34.95 if they

want to get this market moving to new highs. The high-range close so far is

34.82 and intraday high 35.31. The low end is 29.65. The SMH closed at 34.18 and

any real breakout will certainly be a catalyst to take the SPX above 1229 and

extend the fifth wave.

For Wednesday, the SPX 1204.29 high close is the

first upside focus line, and the primary downside zone remains 1190 – 1192.75.

The energy stocks have been giving daytraders about three good trading days a

week, and yesterday was no exception with the
Flip Top breakout in
(
RIG |
Quote |
Chart |
News |
PowerRating) and

the
Slim Jim breakout in
(
DO |
Quote |
Chart |
News |
PowerRating) (five-minute charts). Scrolling the energy

stock focus list every day continues to produce high-probability trade

opportunities.

This is being recorded Tuesday night for

Wednesday.

Have a good trading day,

Kevin Haggerty

P.S. I will be
referring to some charts here:
www.thechartstore.com in the future.