Is The Casino Open?
The
S&P 500 and NDX 100 both
retraced a good part of the wide-range bar rally on Friday, as the S&P 500
closed at 1350, -1.8% and the NDX 100 at 3172, -2.4%. The semis sank again,
with the SOX -9.3%, while the internets followed with a DOT index -6.7%. The
banks slid 3.5%, and the XBD dropped 3.5%.
The chosen ones did exactly
what we wanted, as the players walked away from their toys and that meant
excellent opportunity for the daytraders, as many of those stocks opened up and
then reversed the prior day’s high to the downside and gave you some excellent
shorts. Some stocks that reversed
the highs for good shorts were
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
RBAK |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
AMCC |
Quote |
Chart |
News |
PowerRating),
(
NTAP |
Quote |
Chart |
News |
PowerRating),
(
PMCS |
Quote |
Chart |
News |
PowerRating) and
(
BRCD |
Quote |
Chart |
News |
PowerRating)].Â
The overall volume was 1.2
billion, with the volume ratio at just 21 and declines over advances by -1302.
The NDX 100 has yet to close above the high of the low day, and that frequently
happens when you get an extreme wide-range bar like Friday. If the rally is to
take hold, we will probably get a second higher swing point low after the
retracement of the wide-range bar. Of course, the other scenario is that we make
lower lows and the process starts again until we can get a confirmed change in
direction.
face=”arial, helvetica”>(December Futures) | ||
Fair | size=2>Buy | size=2>Sell |
13.45 | 14.85 | 12.30 |
Pattern
Setups
Look for continuation shorts if we
head south in all of the chosen ones that closed in the bottom of their range,
like
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
AMCC |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
NEWP |
Quote |
Chart |
News |
PowerRating) and
(
VRSN |
Quote |
Chart |
News |
PowerRating).
These are just intraday shorts if you catch a window because you never know when
the casino opens again for the long players.
On the longside, there’s not a whole
lot after yesterday’s trade, so most of the action today will come from the
intraday charts with all the earnings noise this week. Those that set up in case
we go north are
(
CMVT |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
EMC |
Quote |
Chart |
News |
PowerRating) above Friday’s high and a
few of the biotechs that finished slightly in the green yesterday —
(
ABGX |
Quote |
Chart |
News |
PowerRating),
(
PEB |
Quote |
Chart |
News |
PowerRating) and
(
IDPH |
Quote |
Chart |
News |
PowerRating).
Have a good trading day.
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