Only When The Train Leaves
After
the first half-hour down, we got excellent rallies in
both the NDX 100 and S&P 500. The NDX 100
(
NDX |
Quote |
Chart |
News |
PowerRating) only finished +2.2% and
the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) +1.04%, but that was enough to give you substantial
multipoint moves in yesterday’s stocks with good entries.Â
(
JNPR |
Quote |
Chart |
News |
PowerRating) has given us
three big days, as we have gone long, short, then long yesterday as JNPR traded
through the early entry of 118 7/8 to a high of 128 3/4, closing at 128 1/16 for
a 9.3% gain.
(
AMCC |
Quote |
Chart |
News |
PowerRating) advanced
12.7%. The biotechs,Â
(
PDLI |
Quote |
Chart |
News |
PowerRating) (+5.5%),
(
HGSI |
Quote |
Chart |
News |
PowerRating) (+5.3%), and
(
MLNM |
Quote |
Chart |
News |
PowerRating) (+7.8%) also outperformed.Â
The semis had another
excellent day as the Generals have clearly been buying this group over the last
4-8 weeks:
(
ADI |
Quote |
Chart |
News |
PowerRating) advanced for the third successive day (+7.6%);
(
TXN |
Quote |
Chart |
News |
PowerRating)
(+7%) and
(
TER |
Quote |
Chart |
News |
PowerRating) (+6.3%). Then, to a lesser extent, but still outperforming
the indexes, were
(
MU |
Quote |
Chart |
News |
PowerRating) +4%,
(
MXIM |
Quote |
Chart |
News |
PowerRating) +3.1% and
(
LLTC |
Quote |
Chart |
News |
PowerRating) +3.1%.
If you focused on the semis
yesterday, you had a double hat trick as all six advanced. It wasn’t a question
of whether or not you made money, but it was how much and how well you managed
the trade. The semis have had three to four up days in succession. If you get
another continuation entry today or tomorrow, take it. Also be alert for any
intraday setups. The Generals are involved, and you should be also.
So far, the NDX 100 has
rallied 13.9% in four days and the SPX +6.2%, while other stocks have advanced
substantially more, like the semis and the chosen ones. Nevertheless, the empty
suit on TV last night told us that everyone was waiting for the year-end rally
and he didn’t know whether or not we would get it the last two days. If you can
believe that! Â
While they all debate,
“Will it?” or “Is it?” just keep getting on the train
when it leaves in your direction.
face=”arial, helvetica”>(March Futures) | ||
Fair | size=2>Buy | size=2>Sell |
16.95 | Â 18.40Â | Â 15.65 |
Pattern
Setups
Stocks today: From the
chosen ones, if we get continuation:
(
AMCC |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
BEAS |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
CMVT |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
QLCM |
Quote |
Chart |
News |
PowerRating),
(
JDSU |
Quote |
Chart |
News |
PowerRating), and
(
VRSN |
Quote |
Chart |
News |
PowerRating).Â
In the semis, look at
(
AMAT |
Quote |
Chart |
News |
PowerRating)
and also the list from yesterday,
which includes
(
MU |
Quote |
Chart |
News |
PowerRating),
(
TER |
Quote |
Chart |
News |
PowerRating),
(
ADI |
Quote |
Chart |
News |
PowerRating),
(
MXIM |
Quote |
Chart |
News |
PowerRating),
(
LLTC |
Quote |
Chart |
News |
PowerRating) and
(
TXN |
Quote |
Chart |
News |
PowerRating). They have had a good run for three or four days and pullback trade
setups are probably a higher probability — but don’t underestimate the
Generals. They might give us another day of continuation entry.
In the blue chips, focus on
(
EMC |
Quote |
Chart |
News |
PowerRating),
(
ORCL |
Quote |
Chart |
News |
PowerRating),
(
SUNW |
Quote |
Chart |
News |
PowerRating) and
(
CSCO |
Quote |
Chart |
News |
PowerRating). You might get some positive
surprises.
In the biotechs, I like
(
PDLI |
Quote |
Chart |
News |
PowerRating),
(
ABGX |
Quote |
Chart |
News |
PowerRating),
(
HGSI |
Quote |
Chart |
News |
PowerRating),
(
IMNX |
Quote |
Chart |
News |
PowerRating),
(
MLNM |
Quote |
Chart |
News |
PowerRating), and the BBHs,
if you want to cover the group action. On the short side, if you get early ups
and a reversal of yesterday’s highs in some of the chosen ones like AMCC and
JNPR, you might be able to scalp a flash short but don’t be greedy, because they
can turn around and make continuation moves on a dime.
Have a good trading day.
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