Hello, Turk Please?
The
erratic tape continued following
the previous day’s ugly leadership. You can say partly option expiration, and I
would say not that much. You can say tax law selling in the dogs, and I would
say partly so, but not enough to make total NYSE volume 1.5 billion with a
volume ratio of 14, and breadth -1140.
It was a 2.0 volatility
band day for the major indices yesterday with no rally or even a head fake
reversal pattern. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) turned Wednesday’s +1.7% day into a
-2.0% day. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) went from +1.1% to -2.4%. The lopsided
advance/decline ratio yesterday for the S&P 500 was the most since February
and is usually short-term climatic. The NDX
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$NDX.X |
Quote |
Chart |
News |
PowerRating) declined 2.8%.
To point out the good news/bad news tape
or fear/greed, whichever you prefer, since the last swing point high on April 1
of 1481.74, the NDX has traded down, down, up, down, up, down, up, down.
This morning, I see some
(
IBM |
Quote |
Chart |
News |
PowerRating)/SEC chatter, and the media stating the obvious about Powell and
Israel, and now the S&Ps are +7, NDX +12 and Dow Jones futures +60, with
some of the techs trading pre-market green. Why not? Yesterday was down. Let’s
not break the sequence. Or maybe they have sent the Turk in to bail us out.
Go back to when the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s reached the 200-day EMA for the first time, which was above 42, and
then a retest soon after, and then see how you would have fared on the delta
neutral positions that were suggested
at the time because of the inflection point level and reduction in implied
volatility. This erratic movement has been excellent for the adjustments and
also for the absolute move in points. Get that education,
folks.
Yesterday was such a
washout with all sectors red, led by the telecom -5.1% and brokers -4.4%, that
the best thing we can do this morning is to play the game totally on the
intraday setups as they develop, with emphasis on the index proxies and big
caps. Stay away from the tech dogs.
Have a good trading day.
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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