Hat Trick
After
the early up, the SPX
(
$SPX.X |
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zone with significant confluence, from where all of the major indices and
(
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volume increased to 1.7 billion, about 35% above average. In spite of the
afternoon rally, the volume ratio remained negative at 42, which certainly
reflects the lower levels in the morning, which attracted more selling. Breadth
was neutral at +7.
Nasdaq volume was less
than 15% above its average, with the volume ratio positive at 56, as many of the
techs like Microsoft
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MSFT |
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INTC |
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to most semis, as the
(
$SOX.X |
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service stocks also had a good up day.
Sequence traders had
their choice of entries off the lows yesterday. The SPX gave you a 1,2,3 higher
bottom with entry above 1005, and a trend continuation above 1007. It ran to
1018 before a 1,2,3 lower top took most traders out below 1012.66 and also gave
you a chance to get short. The downside only got to 1009 before we got a rush
into the intraday high of just over 1021. The long and short entries were
defined, but the late run into the close wasn’t. The Fib retracement back to
1009 was below all of the 8, 20, 60 and 260 EMAs. The programs have been killing
us with the indices in the last hour or so over the past few days, so it was
easy to pass the third trade from the 1009 level and also to scratch the short
trade.
The DJX
(
$DJX.X |
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gave you a 1,2,3 double bottom with entry above 94.64, running to 96.25. The
Nasdaq and NDX
(
$NDX.X |
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PowerRating) were also 1,2,3 higher bottom entries, while the
SMHs gave you a very defined RST buy entry above 32.54 and running to 34.20. The
intraday low was 32.40, right at the .786 retracement zone.Â
Intel rallied big off the
20 intraday low to close at 21.58, or +6.7% on the day. The reason I give you
some of these actual trade descriptions is to further your education and to
enable seminar attendees and those of you who have read some of my instructional
texts a chance to evaluate your recognition and trading skills. Save the
five-minute charts of these various trades and patterns, and you will have an
excellent reference for future setups. FYI: The 1,2,3s and RSTs are for use in
any market or any time frame, intraday, short-term, intermediate-term or
long-term. Recently, long term has become after lunch.
Stocks
Today
Yesterday, we had defined
entry patterns off the lows from key zones, i.e., the intraday low for the SPX
was 1002.58 vs. the .38 retracement to the 1982 low of 1000, and just below
that, you have a confluence of 3 around the 995 level.
Today and Friday, we look
for some conviction by the Generals, which is needed if we are to get more than
just a day or two from these reflexes.Â
Some stocks that set up
on the daily charts are
(
MCO |
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(
LMT |
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(
GD |
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PowerRating),
(
NOC |
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PowerRating),
(
UTX |
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PowerRating),
(
MMM |
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PowerRating),
(
EBAY |
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PowerRating),
(
CTAS |
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PowerRating),
(
NWL |
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(
PBI |
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PowerRating),
(
CYMI |
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PowerRating) and
(
HOTT |
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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