News Yo-Yo

  • February 27, 2001
  • Kevin Haggerty

Due to
travel delays from the seminar, I
just caught the tail end of yesterday’s market, so I am playing catch up.
Certainly the market, defined as the major averages, is a yo-yo, reacting both
ways to each news blip — but the last three days was an improvement.


Thursday and Friday, the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) declined each day, had lower lows, but finished in the top of its
range each day — which indicates buying pressure. Friday’s rally (attributed by
the media to Fed anticipation) was much needed, as the choke level was getting
very high, which means it was close to a “sell-them-out-at-any-price”
day.


The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating)
and Dow both had the same closing action on Thursday and Friday as the S&P
500, so mark that positive on the score card. Yesterday, we got an RST Change in
Direction, as the S&P 500 not only closed above the high of the low day, but
it reversed three closes and two highs, as did the Nasdaq and the Dow. That is
very positive.


All three closed in the top
of their ranges. The breadth was excellent at +1348 advancers over decliners,
with a volume ratio of 78 on 1.1 billion shares. The Nasdaq Composite had a
volume ratio of 64. As I tried to bring up the TradingMarkets site, I find that
my ISP is once again having network problems on the East Coast, so I can’t check
the NDX 100 or the S&P 500 screens.


Once again, it is field
expediency and I start reviewing my monitor stocks and I check Investor’s
Business Daily and the daily charts.

(March
Futures)

Fair Value

Buy

Sell

3.00

 4.40 

 1.80 

Pattern
Setups

From the daily charts,
setups today include: In the
Medical,
(
AGN |
Quote |
Chart |
News |
PowerRating) and
(
VAR |
Quote |
Chart |
News |
PowerRating). 

In
the Retail:
(
CVS |
Quote |
Chart |
News |
PowerRating),
(
HD |
Quote |
Chart |
News |
PowerRating) and
(
KSS |
Quote |
Chart |
News |
PowerRating). 

In
the Semis:
(
AMAT |
Quote |
Chart |
News |
PowerRating) and
(
RMBS |
Quote |
Chart |
News |
PowerRating). 

In
the Dow industrial-type  stocks:
(
GE |
Quote |
Chart |
News |
PowerRating),
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
TYCO |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating)
and
(
BA |
Quote |
Chart |
News |
PowerRating).

In the Biotechs:
(
GENZ |
Quote |
Chart |
News |
PowerRating),
(
MLNM |
Quote |
Chart |
News |
PowerRating),
(
AMGN |
Quote |
Chart |
News |
PowerRating),
(
IDPH |
Quote |
Chart |
News |
PowerRating) and
(
ABGX |
Quote |
Chart |
News |
PowerRating). In
the Brokers:
(
MER |
Quote |
Chart |
News |
PowerRating),
(
MWD |
Quote |
Chart |
News |
PowerRating),
(
LEH |
Quote |
Chart |
News |
PowerRating) and
(
SCH |
Quote |
Chart |
News |
PowerRating). 

In
the Chosen Ones:
(
VRSN |
Quote |
Chart |
News |
PowerRating) and
(
MERQ |
Quote |
Chart |
News |
PowerRating). 

For
those of you who like to trade with the HOLDRs and also the sector SPDRs, the
SMHs will be an RST trading above 47.40; the
(
XLK |
Quote |
Chart |
News |
PowerRating)s (which is the Technology SPDR)
was a confirmed RST yesterday and is a conservative way to play any tech rally
if we get continuation; and also the
(
XLF |
Quote |
Chart |
News |
PowerRating)s, which was an RST confirmed yesterday
in the Financials.

 Have a good trading
day.