Happy Halloween
It was
a relatively quiet day with no
distinguishing buying or selling pressure, and the October gains were kept
intact. NYSE volume was average at 1.4 billion, the volume ratio positive at 68,
and breadth +901. The major indices all gained, with tech leading the day, as
the NDX 100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) was +2.6%, Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) +2.0%, SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) +1.0%, and Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) +0.7%.
It was another
rise-in-price day for the
(
SPY |
Quote |
Chart |
News |
PowerRating) on extremely light volume, and any indicator
you look at is in the top zone, the same as it was when the SPX was trading at
965. I mentioned the wiggle room and numbers up through the 945 – 950 level in
yesterday’s commentary. Most of all the major indices are bumping up against
their 89-day EMAs and every open and close for the past seven days is within the
daily range of the Oct. 21 bar. That is some coil power building up. It will be
resolved.
Most of the tech indices
were up more than 3.0%, but the SOX was the leader at +6.6%, with double-digit
gains in
(
MXIM |
Quote |
Chart |
News |
PowerRating), +11%,
(
TER |
Quote |
Chart |
News |
PowerRating), +10%, and
(
MCHP |
Quote |
Chart |
News |
PowerRating), +11%. The 3-Day
Wake Up Call screen had about five semis on it. Looking at both the SPX 500 and
NDX 100 screens, the semis and oil service stood out, with the OSX +5.3%. On the
red side, the retail stocks stood out with the Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) flap, as the
RLX was -2.5% on the day.
The SPX once again closed
on that 890 number, which is the .618 retracement to 965, and going out
yesterday at 890.71. The number is getting worn out with activity and won’t last
much longer.
If you haven’t done it
already, run the
Stock Scanner this weekend for all the stocks that are greater than their
20-, 50- and 200-day EMAs with a positive DMI and average daily volume of a
million shares. Using 15 as a minimum price today, there were over 300 names,
and many of these names will be the best stocks when and if the market enters a
third wave. Needless to say, semiconductors should remain a major focus as they
have advanced +42% vs. the SPX and +18 so far in this extended short-term rally.
As I am about to do this,
I see the GDP frenzy has started, as the futures immediately reversed to the red
side. Does anyone remember what the Consumer Confidence Index was the other day?
No, of course you don’t, and neither does the market. Maybe we’ll be lucky and
the market trades down to the lower end of the range, setting us up for 1,2,3s,
RSTs, and whatever else you look at.
Have a good trading day,
have a great Halloween.
Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Wednesday’s NYSE TICKS