How To Build An Intraday Scrolling List
This commentary, for Monday, April 7,
was done Sunday, April 6.
Since
the big gap up on Wednesday morning,
the major indices have gone sideways in a
very narrow range. A good time to do something else other than daytrade.
Thursday’s daily range for the SPX
(
$SPX.X |
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PowerRating) was just 9.8 points, and
Friday was the most narrow daily range of the year at 8.5 points. The SPX and
Dow
(
$INDU |
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PowerRating) were both up just over 0.3% on Friday, while the NDX
(
$NDX.X |
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PowerRating) lost 1.3%, yet the Nasdaq
(
$COMPQ |
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is just a chop market. NYSE volume was light at 1.2 billion, the volume ratio
neutral at 54, as was breadth at +287. The SPX closed at 878.85, down from
Thursday’s 885.22 high, but is into the higher end of resistance, which includes
both the 200-day SMA and EMA just above, along with the primary
head-and-shoulder neckline around the 925 zone. That chart was included in
recent commentary. I have also included a three-month linear regression chart of
the SPX in today’s text that I use all the time for levels.
The June synthetic
straddles have been put on again, as the AIV, which is the average implied
volatility, for the SPX has averaged below 26 for the last two trading days. In
contrast to the AIV for the SPX on March 19 with an 874 close, which was 29.55
and then at the 876 close on March 20, it was 28.44. The trade logic is that a
breakout above this upside resistance will force many market timers and money
managers to be all over the upside move, and money will have to move off the
sidelines at the risk of missing a potential strong move. Needless to say, until
proven otherwise, the major indices have yet to really make it above their
declining longer-term moving averages, so any negative surprise at these levels
has air pocket room on the downside, and Iraq can certainly be a catalyst for
that, although this weekend went well. The bottom line is I’m playing for
volatility.
On the upside, the
(
BBH |
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PowerRating)s have broken above its trading range since coming off the July lows
and then ranging sideways since the week of Aug. 19. I will include the weekly
chart of the BBH in tomorrow’s commentary. They are above the 10-, 30- and
40-week EMAs, which are rising, so this sector should be watched closely for any
pullback setups. If there is more follow through in the biotechs, you will see
many intraday Slim Jims in this sector. Some stocks that are trading above all
the lines on the weekly chart, and therefore should be scrolled daily for
intraday setups are
(
AMGN |
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PowerRating),
(
CELG |
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PowerRating),
(
GENZ |
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PowerRating),
(
GILD |
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(
IART |
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PowerRating),
(
MEDI |
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(
MRX |
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PowerRating).
We talk often about the
major indices, but there are many stocks that are now in their own bull market
and above their rising 10-, 30- and 40-week moving averages. This is where I
concentrate intraday scrolling for long setups. You should use the
TradingMarkets stock scanner. For example, as of Friday’s close, there were 600
stocks with price greater or equal to 15, a volume average of at least 500,000,
a DMI up, and the price greater than the 20-, 50- and 200-day moving averages.
This is a good place for you to start, and you should be checking their weekly
and daily charts for the best setups from this group. This is how you build an
intraday scrolling list that has the highest probability. Also like to look for
the stocks that are consolidating right at or above their longer-term moving
averages in order to catch an early ride on the train if they start to go.
Current examples are
(
GPS |
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PowerRating),
(
VOD |
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PowerRating),
(
LXK |
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PowerRating),
(
CTXS |
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PowerRating),
(
BBBY |
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PowerRating),
(
ADI |
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PowerRating)
and
(
SLAB |
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PowerRating), just to name a few. On the high-flyer end, you will find stocks
that have just, or are in position, to make three-year breakouts and are in
their own bull market. Examples of these kinds of stocks are
(
TEVA |
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PowerRating),
(
IGT |
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PowerRating),
(
SBUX |
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PowerRating),
(
BLL |
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PowerRating)
and
(
BBBY |
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PowerRating), just to name a few of those. Do the work, and you will find the
moves, and it doesn’t matter which direction.
Have a good trading day.
Five-minute chart of
Friday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Friday’s NYSE TICKS