Focus List Of Stocks Continues To Be A Good Source For Daytraders
What Tuesday’s Action Tells
You
The major indices opened up, then filled the
gap
on a retracement to Tuesday afternoon’s 2:00 p.m. ET lows before going trend
up
into the close. The internals were good on the Gap Pullback in the morning
as no
selling came into the action and the Gap Pullback was on reduced
volume.
The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) advanced to 1205.45,
+0.9%, while the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) made a new closing high of 10,759, +0.9%,
vs.
the 02/11/04 10,738 close. The Dow Transports are trading above their 1999
high
close. The
(
QQQQ |
Quote |
Chart |
News |
PowerRating) finished at +1.2% to 39.68, helped in part by the
+1.7%
gain in the
(
SMH |
Quote |
Chart |
News |
PowerRating), as
(
INTC |
Quote |
Chart |
News |
PowerRating), +3.5%, was upgraded by Lehman
Brothers. I
guess the noise about the recent Bank of America downgrade is history. (The
game
goes on.) The rest of the primary sectors were in line with the SPX and Dow,
except the
(
OIH |
Quote |
Chart |
News |
PowerRating), which led the sectors at +1.8% and has been a
significant
sector for traders all year.
NYSE volume was not extremely heavy at 1.49
billion shares, but it was certainly one-sided with 1.2 billion shares up
for a
volume ratio of 79 and breadth very positive at +1460.
Our focus list stocks just blew away the
major
indices yesterday with many new significant multi-year highs, and they
continue
to be the source of individual stocks for daytraders using the
“Above
the Line 1
& 2″ method of stock selection.
The
(
DIA |
Quote |
Chart |
News |
PowerRating) had taken out a four-week
trading
range above 106.25 from 11/17 to 12/14 and trading up to 107.27 on 12/16.
Price
pulled back to the breakout level of 106.25 and then made the 107.47
intraday
high yesterday. This makes 107.27 the initial swing line this morning. (I
have
included the DIA 60-minute chart.) The
(
SPY |
Quote |
Chart |
News |
PowerRating) has a 60-minute chart range
from 121.10 – 120.40 to work through in order to get some open space, so
that is
today’s zone where any intraday short opportunity would develop.
Have a good trading day,
Kevin Haggerty
