Gift Of The Reflex
The
major indices gave us an afternoon "V" bounce with
the NDX
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) providing us a 1-2-3 higher bottom. The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s came
close to the 33.33 .618 retracement level, hitting 33.94 intraday, and then
after the rally, went out at 35.12. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) took out the 1088
.38 retracement level, hitting an intraday low of 1074 before rallying to close
at 1097.98, or +1.4%. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) led at +2.0% and is now almost back
to its 200-day moving average and a good risk/reward short opportunity. The NDX
closed at 1408.29, +1.6% for the day.
NYSE volume was 1.45
billion, with a volume ratio of only 35 on a rally day, pointing out the magical
swiftness of the afternoon price rally. Breadth was moderately positive at +667.
The index proxies had a good volume increase, so we will probably get some
continued upside today, and hopefully, Friday. I am not holding my breath. I
still think there are lower prices after this reflex move is complete. The
oversold
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) gained +3.7%, with the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) +1.6% and the
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) +2.1%. Both the banks and brokers recovered some of the prior
day’s losses.
Needless to say, there is
a lot of noise around most stocks and taking continuation entries is very
difficult, so second entry is a much better strategy. Also, by letting the
intraday trend get established, if there is one, you will have better luck
buying/selling pullbacks in the trend. Sequence trading, as always, is the
dominating factor in these kinds of markets.
Stocks
Today
Daily chart long setups
are
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
BRKS |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating),
(
MU |
Quote |
Chart |
News |
PowerRating) and
(
TER |
Quote |
Chart |
News |
PowerRating).
Also,
(
PCAR |
Quote |
Chart |
News |
PowerRating),
(
AZO |
Quote |
Chart |
News |
PowerRating),
(
IGT |
Quote |
Chart |
News |
PowerRating),
(
GDW |
Quote |
Chart |
News |
PowerRating),
(
SLM |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating),
(
ROH |
Quote |
Chart |
News |
PowerRating),
(
TGT |
Quote |
Chart |
News |
PowerRating) and
(
VAR |
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
|
Additional
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