Many Stocks Are Above The Line — These Are A Few

• September 2, 2004
• Kevin Haggerty

What Wednesday’s Action Tells
You

The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) took out the previous
day’s high of 1104.24 and ran to 1109.25 on the 10:30 a.m. ET bar, which
proved
to be the intraday high. The current rally high is 1109.68 on Friday, 08/27.
There was a 10-minute knife down to 1099.11 from 1105.92 on the 1:05 and
1:10
p.m. bars due to a mistaken news report on a terror incident (hoax).
However,
that is just a glimpse of what to expect when (not if) something real should
happen this fall. We have covered this in some previous commentaries, so I
assume those of you that took heed won’t be caught by that P— Poor Prior
Planning.

NYSE volume was again 1.14 billion and the
volume
ratio 62 and breadth at +828. The SPX closed at 1105.92, +1.7 points, while
the
Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) lost 6 points to 10,168. Both the
(
QQQ |
Quote |
Chart |
News |
PowerRating) and Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) were +0.7%.

The primary price and volume thread in the
sectors was energy, with the
(
OIH |
Quote |
Chart |
News |
PowerRating) +2.4% with our focus stocks making it
an
excellent trading day.

For Active
Traders

All you needed yesterday was the
First-Hour
trading module to catch the focus stock trades. They were just continuation
moves above the previous day’s high with
(
RDC |
Quote |
Chart |
News |
PowerRating), +1.8%, and
(
WFT |
Quote |
Chart |
News |
PowerRating),
+2.2%,
giving you opening reversals.
(
DO |
Quote |
Chart |
News |
PowerRating), +3.9%, was a Flip Top. Entries for
the
three stocks were all above their 20, 60 and 240 EMAs. I have included the
five-minute charts for RDC, WFT and DO.

Today’s
Action

I would expect any action to occur in the
first
90 minutes of trading and/or the last two hours. Go enjoy yourself in
between,
or else take the long weekend. The energy stocks continue to provide
opportunity
as most of them are being pushed close to their previous highs. They are
“above
the line” stocks with lots of Generals and hedge funds involved, so
it’s not
rocket science to keep scrolling for trade opportunities each day. As a
trader,
you always want to be involved where there is price and volume. You don’t
care
which sector. You should have a broader list of energy stocks than the few I
gave you because many will set up at different times due to some normal
Generals’ rotation in the various stocks. Be the parasite and ride the
elephant
because they can’t hide, although many think they can at times.

Many traders focus too much on the major
indices
when, in fact, many stocks remain above the lines providing many long
opportunities, in spite of the major index decline, like
(
PX |
Quote |
Chart |
News |
PowerRating),
(
PCAR |
Quote |
Chart |
News |
PowerRating),
(
APD |
Quote |
Chart |
News |
PowerRating),
(
UTX |
Quote |
Chart |
News |
PowerRating),
(
BA |
Quote |
Chart |
News |
PowerRating),
(
LMT |
Quote |
Chart |
News |
PowerRating) and
(
RTN |
Quote |
Chart |
News |
PowerRating) just to name a few
after
the energy stocks. UTX and PCAR have good daily chart setups right now, as
does
BA, so I would assume you’ll keep adding these various stocks to your list
and
keep scrolling.

Have a good trading day,

Kevin Haggerty