One

• December 28, 2001
• Kevin Haggerty

We had
essentially the same chart as the prior day, with
an early up, an intraday high by 10:15 a.m., then sideways and down in the
afternoon before a mini closing mark-up rally in the last hour took the SPX
(
$SPX.X |
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PowerRating) to an intraday high. NYSE volume was very light at 878 million,
the volume ratio was 71, and breadth was positive at +848.

On the stock side, we had
a few good things happen as the game continued in both
(
NVDA |
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(
GNSS |
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EMLX |
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NMTC |
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MCHP |
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and
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MXIM |
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On the sector side, it
was very bland, with the
(
$SOX.X |
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50-day EMA, closing at 530.61. The Generals have some excellent gains in the
semis since the September low, and after a 12-day pullback, the SOX has
maintained its higher high and higher low sequence. It has broken a three-month
up trendline, which puts it into a potential 1 2 3 short setup. That won’t play
out near-term unless the SOX trades below 506.41. It’s still up until price
proves otherwise.

The
(
$BTK.X |
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which along with the SOX were leaders during the rally, has the same potential 1
2 3 setup as the SOX. The downside 2 swing point is now 547.37, which also puts it below
all of its EMAs if it heads below there. The BTK closed at 591.39.

The additions to the NDX
100
(
$NDX.X |
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especially the addition of the biotechs and the elimination of the broken
lower-priced stocks. The revision will certainly benefit the QQQs.

Stocks
Today

In the semis,
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GNSS |
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NVDA |
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LTXX |
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(
MCHP |
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(
MXIM |
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In the biotechs,
(
GENZ |
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(
IDPH |
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AVIR |
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and
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MEDI |
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Also in healthcare
related,
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THC |
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Other stocks:
(
RIMM |
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(
SEBL |
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CCL |
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KSS |
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AGE |
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GS |
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(
C |
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(
FRE |
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My next commentary will
be in 2002, so have a very happy and safe New Year.

Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs

Five-minute chart of
Thursday’s NYSE TICKS