If You Scroll, You’ll Find Stocks Like These
What Thursday’s Action Tells
You
It was the smallest daily range so far this
week
for the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) at 7.4 points as the index was almost unchanged
at
just +0.48 to 1174.55. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) gained a point to 2047,
while the
(
QQQQ |
Quote |
Chart |
News |
PowerRating) lost a nickel to 37.10. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating), led by
(
CAT |
Quote |
Chart |
News |
PowerRating) -5.1% and
(
SBC |
Quote |
Chart |
News |
PowerRating) -3.7% (with the deal announced), closed at
10,467,
-0.3%. NYSE volume was 1.6 billion shares, the volume ratio 58 and breadth
+303.
In the primary sectors, it was energy up
again,
with the
(
OIH |
Quote |
Chart |
News |
PowerRating) +1.1% for the 11th day up out of the past 13, and it has
been
a daytrader’s windfall in this “Above the Line” sector, while the
major indices
have declined.
The
(
SMH |
Quote |
Chart |
News |
PowerRating) made it three in a row at +0.7%
and
+5.0% for three days. That same 5.0% in the SPX would have taken it above
1220,
and the media would have gotten their tongues back. But I have news for
you:Â
That is a good reflex off a key price zone which was anticipated by savvy
sequence traders, and that is all that matters.
It was an unusual day for those of you who
have
learned to trade the RST because there were three of them yesterday, and all
three trends in the ESH5 were caught with entry at the lowest common
denominator. There is no need to go over the numbers because they are
obvious to
RST traders.
There were some no-brainers in energy stocks
like
(
SUN |
Quote |
Chart |
News |
PowerRating), which was a simple Opening Reversal above 85.60 that ran +1.6% in
just 20 minutes.
(
APA |
Quote |
Chart |
News |
PowerRating) had the same Opening Reversal and also above the
previous day’s high, which was a new high breakout. This trade ran +2.7% to
54.68 from the 53.25 entry level. These were entries on the 9:45 a.m. ET
bars
and emanated from excellent “Above the Line” daily chart setups.
If you scroll
them, you will find them.
(
VLO |
Quote |
Chart |
News |
PowerRating), +3.1%, had a similar trade setup.
The
(
SPY |
Quote |
Chart |
News |
PowerRating) closed at 117.43 with initial
resistance on this fourth day off the 116.37 low at 118 and 118.15. It has
been
three days up in price on declining SPY volume of 68.3 million, 57.4 million
and
55.2 million yesterday. That is never a positive. Money makes stocks go up,
but
the Generals must also have the desire to use it.
This is being done Thursday night for
Friday.
Have a good trading day and a great
weekend,
Kevin Haggerty
