Look For It
The S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) finished -0.8% but
gave us two good trading trends. The morning move from 1256-1273 ended on the
11:35 a.m. bar. There were some good long plays in this move like a
(
MU |
Quote |
Chart |
News |
PowerRating) that
had stayed green while the Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) and SPX traded down.Â
MU was right at its .618
level on the daily charts and then it broke out of the first consolidation to
new intraday highs at 36 and ran 3.8% to 37.37, before joining the afternoon
downtrend, closing at 35.05, up just 0.9% for the day. Scrolling
your intraday charts would have given you that trade.Â
We also got trade-through
entry and decent trades in
(
MER |
Quote |
Chart |
News |
PowerRating),
(
MWD |
Quote |
Chart |
News |
PowerRating),
(
SCH |
Quote |
Chart |
News |
PowerRating),
(
BA |
Quote |
Chart |
News |
PowerRating),
(
MMM |
Quote |
Chart |
News |
PowerRating)
(on a second entry after the gap), and
(
HD |
Quote |
Chart |
News |
PowerRating) on the same entry as MMM. These
stocks don’t give you the funny-money moves like the
(
JNPR |
Quote |
Chart |
News |
PowerRating)s and
(
CIEN |
Quote |
Chart |
News |
PowerRating)s,
but you can only take what is given to you and can’t force it.
The afternoon downtrends
were plain vanilla as the NDX rally in the morning ended at the .618 intraday
retracement level, which was below the open and previous close, then gave you a
1,2,3 lower high short entry below 2039, which then traded down to 1963, closing
at 1964.52. Just a day at the office for those of you that attended my seminar
because it was chapter and verse from the book.Â
I assume that many of you
also caught the RST acceleration on Monday above 1253. Regardless
of all the Greenspan hoopla and economic hype, there is something to do every
day if you are looking for it and then believe it. It is the major benefit of
daytrading and encompasses significantly less risk than taking naked overnight
positions.Â
No stock is sacred and can
be trashed or gapped open -20% to -30% on any given day in this fragile
environment. Today we get more
Greenspan coming at us this morning, so take a long breakfast and watch the game
play out.
|
(March
|
||
|
Fair Value
|
Buy
|
Sell
|
|
2.70
|
4.00Â |
 1.20Â
|
Pattern
Setups
In the plain vanilla
category:
(
DOW |
Quote |
Chart |
News |
PowerRating),
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
BA |
Quote |
Chart |
News |
PowerRating),
(
GE |
Quote |
Chart |
News |
PowerRating),
(
GP |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating),
(
DD |
Quote |
Chart |
News |
PowerRating),
(
SWY |
Quote |
Chart |
News |
PowerRating)
and
(
COST |
Quote |
Chart |
News |
PowerRating).
In
the Brokers:
(
MER |
Quote |
Chart |
News |
PowerRating),
(
SCH |
Quote |
Chart |
News |
PowerRating),
(
MWD |
Quote |
Chart |
News |
PowerRating) (above Monday’s high) and
(
GS |
Quote |
Chart |
News |
PowerRating)
also above Monday’s high. Also in the Financials,
(
COF |
Quote |
Chart |
News |
PowerRating).
For
the Techs: Look for intraday possibilities in
(
MU |
Quote |
Chart |
News |
PowerRating) (which is right near the
.618 level),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
NVLS |
Quote |
Chart |
News |
PowerRating) and
(
AMAT |
Quote |
Chart |
News |
PowerRating) (all three of those are
sitting right at their 50-day EMAs).
On
the short side, the Chosen Ones like
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating) and
(
VTSS |
Quote |
Chart |
News |
PowerRating)
all closed on the lows so there might be some second-entry short plays there.
 Have a good trading
day.
