Reaction Day

  • January 31, 2001
  • Kevin Haggerty

The
Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) traded
in range all day after the early morning games, where it ran to a 2716 high by
10:00 a.m., then a knife down to 2663 by 10:20 a.m. It closed at about
equilibrium which is 2686.14. 


The semis once again
provided you with another profitable trading day, along with
(
CIEN |
Quote |
Chart |
News |
PowerRating). The semis
have, without a doubt, showed you about trading what is, and not what isn’t. 


The S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating),
led by the basics, had a good uptrend move that started at 1356 on the 10:20
a.m. bar and ran to a 1376 high, closing at 1373.73, as it bumps
up at the resistance mentioned in yesterday’s text. 


Today will be a reaction
trading day to any overreaction to the widely heralded rate cut, so keep your
powder dry until it sets up on the intraday chart. 


I would certainly look for
some more carry-through in Semis this morning, after
(
ALTR |
Quote |
Chart |
News |
PowerRating) popped 10% in
after-hours trading, and XLNX gained 7% as they gave analysts a positive head
fake. They are both in the specialized semiconductor sector which also includes
(
QLGC |
Quote |
Chart |
News |
PowerRating), a big gainer yesterday,
(
LLTC |
Quote |
Chart |
News |
PowerRating),
(
CRUS |
Quote |
Chart |
News |
PowerRating),
(
MCHP |
Quote |
Chart |
News |
PowerRating),
(
LSCC |
Quote |
Chart |
News |
PowerRating),
(
CUBE |
Quote |
Chart |
News |
PowerRating) and
(
LSI |
Quote |
Chart |
News |
PowerRating).


You have the summary
list I gave you, so scroll it for intraday setups today, and stay away from
the early noise.

(March
Futures)

Fair Value

Buy

Sell

7.85

  9.15 

 6.55 

Pattern
Setups

In the specialized semis,
look at
(
LSCC |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating) and
(
LLTC |
Quote |
Chart |
News |
PowerRating). 

For
bottom fishers, watch
(
CUBE |
Quote |
Chart |
News |
PowerRating) — it stuck its head up yesterday on some
volume. 

Other
semis to look at:
(
MU |
Quote |
Chart |
News |
PowerRating), which is in a consolidation just below the 200,
(
RMBS |
Quote |
Chart |
News |
PowerRating),
(
IDTI |
Quote |
Chart |
News |
PowerRating)
(watch for a recross of the 200), also
(
STM |
Quote |
Chart |
News |
PowerRating) and
(
CY |
Quote |
Chart |
News |
PowerRating). 

In
the equipment part of the semis, look at
(
KLAC |
Quote |
Chart |
News |
PowerRating) and
(
NVLS |
Quote |
Chart |
News |
PowerRating) — both are in
consolidations at the base of the trading tree just above the 200-day EMA.
Also,
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
ELNT |
Quote |
Chart |
News |
PowerRating). 

In
the Financials, you have
(
MWD |
Quote |
Chart |
News |
PowerRating),
(
MER |
Quote |
Chart |
News |
PowerRating),
(
NTRS |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
PVN |
Quote |
Chart |
News |
PowerRating),
(
AIG |
Quote |
Chart |
News |
PowerRating). In the Chosen Ones you
have
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
BEAS |
Quote |
Chart |
News |
PowerRating) and
(
CIEN |
Quote |
Chart |
News |
PowerRating).

Have a good trading day.