No Negative Anticipation
Yesterday
was a gap up and a contra move down for both the NDX 100 and the SPX.
There was a lunch hour attempt to get it going again, but it failed. The early
morning enthusiasm turned to the blahs. There was still enough action to catch a
move in
(
PDLI |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
CMVT |
Quote |
Chart |
News |
PowerRating) and
(
ADBE |
Quote |
Chart |
News |
PowerRating) on either a first
or second entry. There was an
early run in the semis, but that failed as the
(
SOX |
Quote |
Chart |
News |
PowerRating) finished +0.6%. The
basics, banks and brokers all finished green in front of today’s Fed, so no
negative anticipation. Cutting rates would be a surprise and the expected is
probably neutral bias and cutting the rates in January.
It was a fairly active day,
as the overall market performed better than the NDX 100 and S&P 500, but not
the Dow, which contains the basics and closed at 10645, +2.0%. Total volume was
1.2 billion shares, the volume ratio was 63 and it was over 60 all day.
Advancers led decliners by +799, and institutions were active with 25,189
blocks. Fifty three percent of NYSE stocks remain above their 200-day moving
average.
Taking a look at the major
sectors, you find the following sectors that are above all their key moving
averages:
(
BTK |
Quote |
Chart |
News |
PowerRating),
(
BKX |
Quote |
Chart |
News |
PowerRating),
(
DRG |
Quote |
Chart |
News |
PowerRating),
(
CEX |
Quote |
Chart |
News |
PowerRating) — which is the chemical
index and is right at its 200 — the
(
FPP |
Quote |
Chart |
News |
PowerRating) and the
(
OSX |
Quote |
Chart |
News |
PowerRating), which is the
oil services, which popped yesterday up over 8%. The tech purge has the
(
SOX |
Quote |
Chart |
News |
PowerRating),
(
MSH |
Quote |
Chart |
News |
PowerRating) and the internets, both the
(
DOT |
Quote |
Chart |
News |
PowerRating) and the
(
IIX |
Quote |
Chart |
News |
PowerRating), down below
all of their key averages. The semis have drawn a line in the sand since
mid-October and have gone sideways in a trading range, especially
(
MU |
Quote |
Chart |
News |
PowerRating),
(
TXN |
Quote |
Chart |
News |
PowerRating)
and
(
TER |
Quote |
Chart |
News |
PowerRating).
For today, as every day,
take only what the market gives you. Don’t force it. And, of course, be prepared
for pre-Fed anticipation. After yesterday’s up in the Dow, I would expect the
QQQs to outperform the diamonds on an equal-dollar market-neutral type hedge if
there is an upside explosion this afternoon.Â
face=”arial, helvetica”>(March Futures) | ||
Fair | size=2>Buy | size=2>Sell |
19.80 | Â 21.10Â | Â 18.40Â |
Pattern
Setups
Stocks today: Watch the
semis for intraday chart setups and focus on:
(
MU |
Quote |
Chart |
News |
PowerRating),
(
TXN |
Quote |
Chart |
News |
PowerRating),
(
TER |
Quote |
Chart |
News |
PowerRating),
(
ADI |
Quote |
Chart |
News |
PowerRating)
and
(
AMAT |
Quote |
Chart |
News |
PowerRating). In the biotechs, you have
(
PDLI |
Quote |
Chart |
News |
PowerRating),
(
IMNX |
Quote |
Chart |
News |
PowerRating),
(
GENZ |
Quote |
Chart |
News |
PowerRating)
and also the HOLDR’s, the
(
BBH |
Quote |
Chart |
News |
PowerRating)‘s. Financials, look at
(
NTRS |
Quote |
Chart |
News |
PowerRating),
(
AIG |
Quote |
Chart |
News |
PowerRating),
(
COF |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating) and
(
STI |
Quote |
Chart |
News |
PowerRating). In the drugs, stay with
(
PFE |
Quote |
Chart |
News |
PowerRating), and
also the
(
PPH |
Quote |
Chart |
News |
PowerRating)‘s, which set up on the daily charts. In the basics and
related, I like
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
AA |
Quote |
Chart |
News |
PowerRating) and
(
DOW |
Quote |
Chart |
News |
PowerRating).
Other stocks to focus on:
(
QLGC |
Quote |
Chart |
News |
PowerRating)
on a recross of the 200,
(
TLAB |
Quote |
Chart |
News |
PowerRating),
(
CEFT |
Quote |
Chart |
News |
PowerRating),
(
EMR |
Quote |
Chart |
News |
PowerRating),
(
NBL |
Quote |
Chart |
News |
PowerRating) and
(
SLB |
Quote |
Chart |
News |
PowerRating).
Have a good trading day.
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