Narrow Range 20
There
wasn’t much of a market yesterday to
talk about with only 905 million shares trading on the NYSE, which is just about
80% of its average daily volume. The volume ratio was slightly positive in the
neutral zone as was the breadth. The Nasdaq was even lighter at 1.3 billion
shares, which is less than 75% of its average volume. There were a few bright
spots, as the Semi equipment stocks were green all day, and we got entry in
(
KLAC |
Quote |
Chart |
News |
PowerRating)
and
(
NVLS |
Quote |
Chart |
News |
PowerRating). We also got long entry in
(
FNM |
Quote |
Chart |
News |
PowerRating) and
(
FRE |
Quote |
Chart |
News |
PowerRating), in addition
to short entry in
(
SEBL |
Quote |
Chart |
News |
PowerRating) and
(
LXK |
Quote |
Chart |
News |
PowerRating).
There was nothing
significant in the sectors except the Biotechs
(
BTK |
Quote |
Chart |
News |
PowerRating), which came back with a
-2.7% day following three straight up days. The
(
BBH |
Quote |
Chart |
News |
PowerRating)s closed below the
previous day’s low, confirming a swing-point high, so we must be alert for a
continuation short today. As a daytrader, you have that luxury. The
(
SPX |
Quote |
Chart |
News |
PowerRating)
had a range of just 8.64 points, which is the narrowest range in 20 days with a
1209.05 high and 1200.41 low, which is the .50 retracement to the 1082 low. The
index closed at 1204.52, so we know the starting points for today: above
yesterday’s high and below yesterday’s low.
The Generals didn’t show
yesterday, but some of the program trading teams did. Today is the last day of
the month, which is usually not as active as those several days prior to
month-end, but we still must be ready to take advantage of any program games.
The last two narrow-range days for both the
(
SPX |
Quote |
Chart |
News |
PowerRating) and
(
NDX |
Quote |
Chart |
News |
PowerRating) will be
resolved shortly. Sharp moves usually follow periods of low volume and
narrow-range low-volatility days.
|
(September
|
||
|
Fair Value
|
Buy
|
Sell
|
|
4.20
|
5.40 |
3.00
|
Stocks
Today
Long setups on the daily
chart:
(
HD |
Quote |
Chart |
News |
PowerRating),
(
LOW |
Quote |
Chart |
News |
PowerRating),
(
FDC |
Quote |
Chart |
News |
PowerRating),
(
ABT |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
STI |
Quote |
Chart |
News |
PowerRating),
(
CBE |
Quote |
Chart |
News |
PowerRating),
(
CAH |
Quote |
Chart |
News |
PowerRating),
(
ENZN |
Quote |
Chart |
News |
PowerRating),
(
WPI |
Quote |
Chart |
News |
PowerRating) above Friday’s high, and
(
VAR |
Quote |
Chart |
News |
PowerRating).
In the Semis, which do
not set up on the daily charts on the long side, but there’s obviously lots of
activity, lots of volume, the Generals are involved, I would concentrate on the
following ones for intraday setups both ways:
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
NVLS |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating),
(
TXN |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating) and
(
NVDA |
Quote |
Chart |
News |
PowerRating).
On the shortside, short
setups from the daily charts include
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
CHKP |
Quote |
Chart |
News |
PowerRating),
(
QLGC |
Quote |
Chart |
News |
PowerRating), the
(
BBH |
Quote |
Chart |
News |
PowerRating)s,
(
HGSI |
Quote |
Chart |
News |
PowerRating),
(
VRTS |
Quote |
Chart |
News |
PowerRating) and
(
GS |
Quote |
Chart |
News |
PowerRating). In the Energies, after eight straight up
days, we’ve got reversal bars at the 50- and 200-day EMAs in
(
APA |
Quote |
Chart |
News |
PowerRating),
(
APC |
Quote |
Chart |
News |
PowerRating)
and
(
BHI |
Quote |
Chart |
News |
PowerRating). So, if they decide to take those for a little rest, get right on
them on the short side.
Have a good trading day.
Five-minute chart of
Monday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Monday’s NYSE TICKS
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