Get This List Together
What Monday’s Action Tells You
Monday
was deadly silent, as the SPX
(
$SPX.X |
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PowerRating) had an extreme narrow-range day of
only 7.1 points with a 1000.68 intraday high and 993.59 low. Both the SPX and
Dow
(
$INDU |
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PowerRating) lost 0.2%, while the
(
QQQ |
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(
$COMPQ |
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were up 0.2% and 0.3%. NYSE volume was light at 1.28 billion, volume ratio
absolutely neutral at 50, with breadth the same at just -171. No decisions made
yesterday, that’s for sure. The only noise in the major sectors was the
(
BBH |
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Chart |
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PowerRating)s, +2.3% and
(
SMH |
Quote |
Chart |
News |
PowerRating) +1.0%.Â
The QQQs had a fall off in volume, trading only
56 million shares vs. an 83-million-share average, while the
(
SPY |
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PowerRating) traded
17% less than its average volume. The BBHs traded more than its average, and the
SMH volume was in line with its average. The semi equipment stocks led the
semiconductors, with
(
AMAT |
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PowerRating),
(
KLAC |
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PowerRating) and
(
NVLS |
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PowerRating) all up, in
addition to a couple of cyclicals, which finished green again, which were
(
DOW |
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PowerRating), from our focus list, at +2.3%, and
(
AA |
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Chart |
News |
PowerRating) +1.0%.Â
Yesterday’s market action tells you very little,
other than the Generals didn’t show up to play in the game, and when they are
absent, the hedge funds go quiet, and when there is no travel range, daytraders
are better off shutting down the machine and doing something else.Â
For Active Traders
There were, however, a couple of trade
opportunities in the E-minis yesterday. The first being a Trap Door long setup,
with entry on the 10:00 a.m. ET five-minute bar above 993.75, which ran to
999.50 by 10:15, then reversed, trading down to an intraday low of 991.50 vs.
the 240 EMA at 991. This gave you an RST long entry above 992.75 which ran to
998.50 before trading back down to the 240 EMA again on the 2:40 p.m. bar. They
went out around 993.50 depending on your vendor’s closing price. The chop made
it hard to manage the trades, especially on the exits, without giving up too
much price. However, you were still able to take out a few points in spite of
the choppy market.Â
With the SPX now trading toward the middle of the
month-long trading range and at no key inflection points, it makes sense to put
together a list of stocks that are trading above their rising moving averages
that have pulled back to their 20- or 50-day EMA or are within a consolidation
at or near their rally highs. If the narrowing volatility in the major indices
is resolved to the upside, these kinds of stocks will be in position to make a
tradable move. Some stocks that fit this category are
(
PCAR |
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Chart |
News |
PowerRating),
(
MRVL |
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News |
PowerRating),
(
MERQ |
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News |
PowerRating),
(
TARO |
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News |
PowerRating),
(
SNPS |
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News |
PowerRating),
(
GILD |
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News |
PowerRating),
(
AMGN |
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News |
PowerRating),
(
MEDI |
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News |
PowerRating),
(
CDWC |
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News |
PowerRating),
(
DISH |
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Chart |
News |
PowerRating),
(
PIXR |
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News |
PowerRating),
(
JBL |
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News |
PowerRating),
(
SFA |
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PowerRating),
(
APOL |
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PowerRating) and
(
XRAY |
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News |
PowerRating).Â
I am doing this Monday night for Tuesday morning,
so I can’t see if a game is being played in the pre-9:30 a.m. futures market,
but if there is, I know you’ll be ready to capitalize on those first-hour
strategies from the modules
and seminar
video.Â
Have a good trading day.
Kevin Haggerty
