Have Fun
Yesterday’s
early up was enough to get it
done for us, especially in
(
GILD |
Quote |
Chart |
News |
PowerRating) which rose +4.8 points from entry, along
with good pops in
(
UNH |
Quote |
Chart |
News |
PowerRating) and
(
THC |
Quote |
Chart |
News |
PowerRating). We caught the biotechs —
(
IMCL |
Quote |
Chart |
News |
PowerRating),
(
GENZ |
Quote |
Chart |
News |
PowerRating) and
(
CHIR |
Quote |
Chart |
News |
PowerRating) — as the
(
BTK |
Quote |
Chart |
News |
PowerRating) index remained green all day in
spite of the afternoon downtrend. The biotechs have had a good run in recent
days and the
(
BBH |
Quote |
Chart |
News |
PowerRating)s broke through their 50-day EMA, but it’s probably time
for a pause as it bumps up against its 100-day EMA of 125 1/2. If you get a
continuation daytrade entry above a previous high for the biotechs, take the
second one, not the first, and keep a tight stop. You should be alert for
intraday short setups in the biotechs, as the BTK is +9.1% in the last two
sessions.Â
I see that the futures
are strong green as I do this at 7:30 p.m. EDT, probably due to Cisco’s
(
CSCO |
Quote |
Chart |
News |
PowerRating)
positive spin, I guess. As we have noted in recent commentaries, there was some
significant volume in CSCO around the 16.30-16.40 on two occasions as the stock
held the levels. Maybe this is why, and the hope is that it works as a market
catalyst for a decent rally.
Volume is the Generals’
way of talking. The volume on both the NYSE and Nasdaq was below average
yesterday, as the NYSE had a volume ratio of 40, and the Nasdaq 36. Breadth was
negative in both markets. The up volume to down volume ratio was never better
than 1.3:1 yesterday, and that was at 10:00 a.m. I don’t count the 1.5 at 9:40
a.m. because not enough volume had traded to be significant.
The semis came out green
early, as we got the benefit of a quiet down opening and then a rally which was
perfect for trade-through entries above the previous day’s high. You also got a
second chance as the semis pulled back, and many of them then ran to new
intraday highs. The early sector participation wasn’t broad, as the
(
SOX |
Quote |
Chart |
News |
PowerRating),
BTK,
(
XBD |
Quote |
Chart |
News |
PowerRating),
(
XOI |
Quote |
Chart |
News |
PowerRating) and
(
UTY |
Quote |
Chart |
News |
PowerRating) made up the early green. They remained
that way most of the day, and in the afternoon, the
(
FPP |
Quote |
Chart |
News |
PowerRating) and
(
CEX |
Quote |
Chart |
News |
PowerRating)
turned green as the XBD went red.Â
Keeping my market
dynamics scorecard, which I will show you the revised one in Vegas, it shows
that the
(
SPX |
Quote |
Chart |
News |
PowerRating) played in a range of +4 to -4 on the day. The money was made
in the morning. The
(
NDX |
Quote |
Chart |
News |
PowerRating) had swings from +23 to -19 at 4:00 p.m. That’s
recording on 15-minute intervals. The dynamics determine the probability of a
trade, and I’ll expand on that in Vegas.Â
|
(September
|
||
|
Fair Value
|
Buy
|
Sell
|
|
2.45
|
3.60
|
1.35
|
Stocks
Today
In the semis, key
yesterday’s list on your screen because if the rally continues, the Generals have
to be there, and they will lead. In the biotechs, some big moves yesterday, but
a couple that have some room are
(
IMCL |
Quote |
Chart |
News |
PowerRating),
(
ICOS |
Quote |
Chart |
News |
PowerRating) and
(
CHIR |
Quote |
Chart |
News |
PowerRating). Also
(
BGEN |
Quote |
Chart |
News |
PowerRating) if they want to take it out of its trading range. In the basics,
look at
(
GP |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating),
(
DOW |
Quote |
Chart |
News |
PowerRating) and
(
AA |
Quote |
Chart |
News |
PowerRating).
Other stocks:
(
BAX |
Quote |
Chart |
News |
PowerRating),
(
KEY |
Quote |
Chart |
News |
PowerRating),
(
CMA |
Quote |
Chart |
News |
PowerRating). Also
(
HCR |
Quote |
Chart |
News |
PowerRating) and
(
HCA |
Quote |
Chart |
News |
PowerRating), but don’t forget
(
THC |
Quote |
Chart |
News |
PowerRating)
and
(
UNH |
Quote |
Chart |
News |
PowerRating) from yesterday if they decide they want to give us another
continuation day. Also
(
FDC |
Quote |
Chart |
News |
PowerRating) and
(
ERTS |
Quote |
Chart |
News |
PowerRating).
As I’ve finished this up
on the audio, I see the numbers are still major green, so it looks like we’re
going to have some fun today.Â
Have a good trading day
and a better weekend.
Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Thursday’s NYSE TICKS
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