Here’s Where You Can Get Some Excellent Two-Way Action
What Tuesday’s Action Tells
You
Yesterday’s market action was excellent for
traders, as the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) range expanded to 13.9 points, and you
know
this corner welcomes the volatility relative to the delta neutral trade in
place. The SPX and Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) were -0.5% and 0.6%, while the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed at 2096 and ended -0.7%, with the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s -1.0%.
Volume was again on the higher end at 1.55 billion, breadth was neutral at
just
-60, and the volume ratio 40, with the 4 MA neutral at 52. The 5 RSI is now
down
to 55.
In the major sectors, the
(
SMH |
Quote |
Chart |
News |
PowerRating) was -2.4%,
which is no surprise after a +10.1% gain over the previous six trading sessions.
Gold (XAU) was -2.7%, as bonds advanced with the
(
TLT |
Quote |
Chart |
News |
PowerRating) +0.7% and short positions
will be initiated into the price strength. A few of the retail stocks were green,
like
(
TGT |
Quote |
Chart |
News |
PowerRating) +2.4%,
(
LOW |
Quote |
Chart |
News |
PowerRating) +1.7% and
(
KSS |
Quote |
Chart |
News |
PowerRating) +1.1%, all on reflexes after
recent declines. However, the net net net is no change in the extended price
and overbought condition of the major indices, as the SPX approaches the 1150
– 1160 level.
| size=2> |
Wednesday
1/7 |
Thursday
1/8 |
Friday
1/9 |
Monday
1/12 |
Tuesday
1/13 |
| color=#0000ff>Index | |||||
| color=#0000ff>SPX | |||||
| color=#0000ff>High |
1126.33
|
1131.92
|
1131.92
|
1127.85
|
1129.07
|
| color=#0000ff>Low |
1116.45
|
1124.91
|
1120.90
|
1120.90
|
1115.19
|
| color=#0000ff>Close |
1126.33
|
1131.92
|
1121.86
|
1127.23
|
1121.22
|
| color=#0000ff>% |
+0.2
|
+0.5
|
-0.9
|
+0.5
|
-0.5
|
| color=#0000ff>Range |
9.9
|
7.0
|
11
|
7.0
|
13.9
|
| color=#0000ff>% Range |
100
|
100
|
10
|
90
|
43
|
| color=#0000ff>INDU |
10529
|
10592
|
10459
|
10485
|
10427
|
| color=#0000ff>% |
-.09
|
+0.6
|
-1.3
|
+0.3
|
-0.6
|
| color=#0000ff>Nasdaq |
2078
|
2100
|
2087
|
2112
|
2096
|
| color=#0000ff>% |
+1.0
|
+1.1
|
-0.6
|
+1.2
|
-0.7
|
| color=#0000ff>QQQ |
37.68
|
38
|
37.74
|
38.35
|
37.95
|
| color=#0000ff>% |
+0.9
|
+0.9
|
-0.6
|
+1.6
|
-1.0
|
| color=#0000ff>NYSE |
|
|
|
|
|
| color=#0000ff>T. VOL |
1.7
|
1.86
|
1.67
|
1.47
|
1.55
|
| color=#0000ff>U. VOL |
957
|
1.25
|
615
|
914
|
608
|
| color=#0000ff>D. VOL |
709
|
603
|
1.04
|
535
|
921
|
| color=#0000ff>VR |
57
|
67
|
37
|
63
|
40
|
| color=#0000ff>4 MA |
60
|
63
|
53
|
56
|
52
|
| color=#0000ff>5 RSI |
92
|
91
|
60
|
67
|
55
|
| color=#0000ff>ADV |
1775
|
2033
|
1639
|
2079
|
1627
|
| color=#0000ff>DEC |
1541
|
1254
|
1661
|
1230
|
1687
|
| color=#0000ff>A-D |
+234
|
+779
|
-22
|
+849
|
-60
|
| color=#0000ff>4 MA |
+447
|
+582
|
+284
|
+460
|
+386
|
| color=#0000ff>SECTORS |
|
|
|
|
|
| color=#0000ff>SMH |
+1.2
|
+2.7
|
-0.2
|
+2.2
|
-2.4
|
| color=#0000ff>BKX |
-.07
|
+0.3
|
-0.4
|
-.01
|
-0.7
|
| color=#0000ff>XBD |
+1.0
|
+0.1
|
-0.9
|
+1.1
|
-0.2
|
| color=#0000ff>RTH |
-.09
|
-1.3
|
-0.3
|
-0.3
|
+0.7 |
| color=#0000ff>CYC |
-.02
|
+1.2
|
-1.0
|
+0.6
|
-0.2
|
| color=#0000ff>PPH |
+1.0
|
-0.8
|
-0.8
|
-0.1
|
-0.6
|
| color=#0000ff>OIH |
-1.6
|
+2.1
|
+3.8
|
-0.7
|
-0.4
|
| color=#0000ff>BBH |
+1.6
|
-1.2
|
-.04
|
-0.2
|
-0.2
|
| color=#0000ff>TLT |
+0.4
|
-0.1
|
+1.8
|
-.08
|
+0.7
|
| color=#0000ff>XAU |
-2.1
|
+0.6
|
+1.4
|
-1.7
|
-2.7
|
^next^
For Active Traders
The story yesterday was the trading which started
with the Flip
Top short below 113 on the
(
SPY |
Quote |
Chart |
News |
PowerRating) trading down to 111.82, which was another
sequence level. The SPY bounced to 112.39 and then down to 111.76, and then
a rally into a 112.56 close. All four reversal were from sequence levels, almost
to the penny. The initial Flip Top entry for the ESH4 was below 1126.25 with
entry on the 10:10 a.m. ET bar, trading down to 1114.
Our short side focus in the basics and
homebuilders was very trader friendly yesterday with opening reversals in
(
DD |
Quote |
Chart |
News |
PowerRating) and
(
AA |
Quote |
Chart |
News |
PowerRating) for nice gains, and better yet,
(
PD |
Quote |
Chart |
News |
PowerRating), which I
mentioned
in previous commentary that I had no interest in the upside breakout of the
80.76 box, but I did care on the downside and got that opportunity
yesterday, as
PD broke below the 76.06 low close and traded down to 73.70, closing at
74.45.
For Today
In the homebuilders, there were continuation
shorts in
(
CTX |
Quote |
Chart |
News |
PowerRating),
(
PHM |
Quote |
Chart |
News |
PowerRating) and
(
RYL |
Quote |
Chart |
News |
PowerRating), just to name a few. When the
Generals start to take profits from extreme levels, like these homebuilders,
daytraders get some excellent two-way action because the selling gets very
aggressive, and then you get some sharp oversold reflexes.
If you can’t find something to do today in the
semis, basics and homebuilders, then it means you’re not looking for them.
Have a good trading day,
Kevin Haggerty
