Let It Come To You
Both
the SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) and Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) finished green yesterday, with
the SPX +0.5% and the Dow +0.7%, while the NDX
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) was -0.2% and the
Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) +0.1%. The cleansing of the dogs from the Generals’
portfolio was the drag on the NDX. If you were focused on techs, the market
looked ugly, and you were happy if you played basics, oil service, and the
financials. NYSE volume was
lighter at 1.172 billion, a volume ratio of 71, and breadth positive at +1090.
The NDX had a volume ratio of below 50 and negative breadth.
The three semis —
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating) and
(
NVLS |
Quote |
Chart |
News |
PowerRating) — didn’t give you anything yesterday
until the RST buy patterns off the intraday lows around 2:00 p.m. All of these
had positive divergence on your five-minute chart with the 8,3,3 slow
stochastic.
I didn’t like yesterday’s
market action, and I never do when I see rising prices with declining volume,
especially into quarter’s end. The bias for the up price was expected and will
probably carry through a few days into April reinvestment, but I will not hold
my breath. As I previously
said, the major indices look like they want to work
lower.
Both the SPX and DJX
closed in narrow-range symmetrical triangles near the top of their range. Go to
your five-minute chart, outline the triangle, then draw a line through the apex
for your stop point. Be ready to play the triangle breakout either way because
the apex line gives you a tight stop. Maybe we will get lucky with a downside
break first, then a pattern failure, and a reversal out the top of the triangle,
which would probably be a good trade.
Any big volume
quarter-end action should have been completed by now. The institutions don’t
initiate big volume mark-ups on the last day of the quarter because the SEC
frowns on that and has for the past couple of years.
For today, only take the
trades that absolutely set up. Don’t force anything. Let it come to you. If it’s
quiet and sideways, just shut the machine off and go do something in the real
world. Your homework over the weekend is to frame your short levels on the
proxies to be prepared if the indices turn south next week after a few days of
reinvestment.
Stocks
Today
Setups on the daily
chart:
(
IPG |
Quote |
Chart |
News |
PowerRating),
(
GM |
Quote |
Chart |
News |
PowerRating),
(
BMC |
Quote |
Chart |
News |
PowerRating),
(
USAI |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating),
(
UPS |
Quote |
Chart |
News |
PowerRating) and
(
FDX |
Quote |
Chart |
News |
PowerRating).
In the financials,
(
C |
Quote |
Chart |
News |
PowerRating),
(
STT |
Quote |
Chart |
News |
PowerRating),
(
BAC |
Quote |
Chart |
News |
PowerRating) and
(
WFC |
Quote |
Chart |
News |
PowerRating).
And in the brokers,
(
GS |
Quote |
Chart |
News |
PowerRating) and
(
MWD |
Quote |
Chart |
News |
PowerRating).
And also
(
AXP |
Quote |
Chart |
News |
PowerRating) in the
financial services.
In the semis, look at
(
MXIM |
Quote |
Chart |
News |
PowerRating),
(
TER |
Quote |
Chart |
News |
PowerRating) and also the three:
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating) and
(
NVLS |
Quote |
Chart |
News |
PowerRating). They’ll give you something during the day.
Have a good trading day.
Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Wednesday’s NYSE TICKS
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