Pattern Plus Time Made For Good Setups In This Group
What Tuesday’s Action Tells
You
The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) ended flat, closing at
1138.76, minus just 1.07 points from Friday’s 1139.83 close. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating)
at 10,529 was -0.7%, led by
(
MMM |
Quote |
Chart |
News |
PowerRating) -5.8%,
(
HON |
Quote |
Chart |
News |
PowerRating) -4.6% and
(
UTX |
Quote |
Chart |
News |
PowerRating) -2.6%.
NYSE volume was 1.7 billion, with the volume ratio again positive at 65 and
the 4 MA now 66. Breadth picked up to +805. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) ended
+0.3%, while the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s closing at 38.55 were flat. So, net net, yesterday’s
market action didn’t tell much of a story, but the 4 MA of the volume ratio
at 66 tells us that the buyers are still in charge, at least until the imminent
air pocket.
| size=2> |
Wednesday
1/14 |
Thursday
1/15 |
Friday
1/16 |
Monday
1/19 |
Tuesday
1/20 |
| color=#0000ff>Index | |||||
| color=#0000ff>SPX | |||||
| color=#0000ff>High |
1130.75
|
1137.11
|
1139.83
|
H
|
1142.93
|
| color=#0000ff>Low |
1121.22
|
1124.50
|
1132.05
|
|
1135.40
|
| color=#0000ff>Close |
1130.52
|
1132.05
|
1139.83
|
O
|
1138.76
|
| color=#0000ff>% |
+0.8
|
+0.1
|
+0.7
|
|
-.09
|
| color=#0000ff>Range |
9.5
|
12.6
|
7.8
|
L
|
7.5
|
| color=#0000ff>% Range |
98
|
63
|
100
|
|
45
|
| color=#0000ff>INDU |
10538
|
10554
|
10601
|
I
|
10529
|
| color=#0000ff>% |
+1.1
|
+0.1
|
+0.4
|
|
-0.7
|
| color=#0000ff>Nasdaq |
2111
|
2109
|
2140
|
D
|
2148
|
| color=#0000ff>% |
+0.7
|
-0.1
|
+1.5
|
|
+0.3
|
| color=#0000ff>QQQ |
38.25
|
38.18
|
38.56
|
A
|
38.55
|
| color=#0000ff>% |
+0.8
|
+0.3
|
+1.0
|
|
-.05
|
| color=#0000ff>NYSE |
|
|
|
Y
|
|
| color=#0000ff>T. VOL |
1.51
|
1.67
|
1.72
|
1.7
|
|
| color=#0000ff>U. VOL |
1.11
|
849
|
1.25
|
1.09
|
|
| color=#0000ff>D. VOL |
376
|
814
|
447
|
594
|
|
| color=#0000ff>VR |
75
|
51
|
74
|
65
|
|
| color=#0000ff>4 MA |
54
|
57
|
60
|
66
|
|
| color=#0000ff>5 RSI |
67
|
69
|
77
|
73
|
|
| color=#0000ff>ADV |
2236
|
1638
|
1894
|
2062
|
|
| color=#0000ff>DEC |
1047
|
1661
|
1392
|
1257
|
|
| color=#0000ff>A-D |
+1189
|
-23
|
+502
|
+805
|
|
| color=#0000ff>4 MA |
+489
|
+489
|
+402
|
+618
|
|
| color=#0000ff>SECTORS |
|
|
|
|
|
| color=#0000ff>SMH |
-0.2
|
+1.2
|
+0.4
|
-0.2
|
|
| color=#0000ff>BKX |
+0.8
|
+0.8
|
+0.3
|
+.01
|
|
| color=#0000ff>XBD |
+1.6
|
+1.2
|
+2.2
|
+1.6
|
|
| color=#0000ff>RTH |
+0.8
|
+0.7
|
-0.2
|
-1.0
|
|
| color=#0000ff>CYC |
+0.8
|
-.07
|
+0.5
|
-0.3
|
|
| color=#0000ff>PPH |
+0.1
|
+.05
|
-0.3
|
+0.1
|
|
| color=#0000ff>OIH |
-1.6
|
-1.7
|
+2.3
|
+4.3
|
|
| color=#0000ff>BBH |
+0.5
|
+0.8
|
+1.4
|
-0.3
|
|
| color=#0000ff>TLT |
+0.4
|
+0.4
|
-0.7
|
-.07
|
|
| color=#0000ff>XAU |
-4.1
|
-4.0
|
+1.2
|
+2.4
|
^next^
For Active Traders
In the primary sectors, it was energy, as the
(
OIH |
Quote |
Chart |
News |
PowerRating)s led at +4.3%, but most of those stocks gapped open and didn’t
look
back.
(
BJS |
Quote |
Chart |
News |
PowerRating) led at +7.1%,
(
NBR |
Quote |
Chart |
News |
PowerRating) +6.8%,
(
RDC |
Quote |
Chart |
News |
PowerRating) +5.0% and
(
RIG |
Quote |
Chart |
News |
PowerRating)
+4.3%. The XLEs made new highs and closed at 28.46, +2.5%. However, we
didn’t
get shut out as there was good entry in
(
BHI |
Quote |
Chart |
News |
PowerRating) +3.4%,
(
XOM |
Quote |
Chart |
News |
PowerRating) +1.0%,
and
(
PTEN |
Quote |
Chart |
News |
PowerRating) +5.7% on a continuation out of its 11-week trading range, as it
was
also day 55 from the beginning of that range. There was pattern plus time
and
daily chart setups in many other stocks in the group on their retracements
to
the 20-day EMA zone. Good things happen when you anticipate them based on
facts,
not emotion.
(
MERQ |
Quote |
Chart |
News |
PowerRating), from yesterday’s focus list, had a
good day at +4.3% on a breakout from its range, but there was no trade-through
entry because it had gapped open. There was, however, a Slim
Jim breakout above 53.50 on the 3:20 p.m. ET bar which ran to 54.22, closing
at 53.91.
Today’s
Action
The brokers (XBD) which were +5.9% last week,
getting a push from the J.P. Morgan deal, had the fourth up day in
succession at
+1.6% and are now +7.5% over that time. Brokers and bull markets go
together, so
they are always an early read anticipating any reversal of the immediate
trend
and should be watched closely.
Many of the semis had light volume days
yesterday, with
(
AMAT |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
XLNX |
Quote |
Chart |
News |
PowerRating),
(
MU |
Quote |
Chart |
News |
PowerRating) and
(
ALTR |
Quote |
Chart |
News |
PowerRating)
all trading 30% or more below their average volume. An exception was
(
AMD |
Quote |
Chart |
News |
PowerRating)
+3.7% on +63% more than its average volume. The
(
SMH |
Quote |
Chart |
News |
PowerRating)s had another
narrow-range doji day and are in an eight-day range between 45.75 – 44,
closing
yesterday at 45.25. The 20-day EMA is down at 43.53. The semis are always a
focus because of excellent volatility.
(
INTC |
Quote |
Chart |
News |
PowerRating) closed 32.57, with the
50-day
EMA at 32.15 and the 20-day EMA just above at 32.56. I will look to any
intraday
long setups in INTC as an early read on whether they might break the SMHs
out of
the range of their current cup-and-handle pattern.
The Dow closed at 10,601 last Friday, then had a 10,604
intraday high yesterday, closing at 10,527, which is below the previous
day’s
low and also reversed the previous three closes on an outside day. On Jan.
8,
the Dow made a new high close at 10,592, then the next day closed down at
10,459, reversing three previous lows and four closes. There is a .707
retracement zone to 11,750 in play at 10,416, and the .786 retracement at
10,775, so it’s no surprise about the 10,604 – 10,400 range for the past two
weeks. This is in conjunction with the SPX trading up into the 1150 – 1160
zone.
I will look to the Dow futures/DIAs for any short setup if the indices go
red
today.
Have a good trading day,
Kevin Haggerty
