Respect Price And Volume
The
SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) didn’t give any
trade-through short entry yesterday, as the
(
SPY |
Quote |
Chart |
News |
PowerRating)s held a 105.52 low, then
rallied after an opening reversal for a trend day up. The SPX closed at 1081,
+2.3%. The Dow finished +2.1%, and the NDX 100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) +4.8%. The
Russell 2000 tacked on 3.2%, and the SPX Mid-Cap 400 rose 2.8%, so it was
certainly an across-the-board gain. Volume was just 10% above average at 1.3
billion, but the volume ratio was very strong at 83, and breadth was excellent
at +1383. It just means to me that there will be short entry at a higher level
to test the 944.75 low. There is a 21-day Fib pivot date on Oct. 12, a 144-day
pivot on Oct. 13, which should carry over to the next trading day which is Oct.
15, and that is also a minor cycle reversal date. That gives us time awareness,
in addition to the .618 retracement to the 1186.85 high, which is 1094. Any
overshoot takes the SPX up into its 50-day EMA at 1102. The
"V" move off the 945 low won’t stand up without a good test. The
better reward/risk short will come as the index trades into these levels, rather
than wait for the index to break below 1052.70.
I respect price and
volume, and we got plenty of sector price yesterday, but not big volume. The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
gained 6.7% and has now gone +4.3%, +0.1%, +5%, and -5.9% and yesterday’s +6.7%
over the past five days for a net percentage gain of 10.2%. That is trader’s
nirvana.
It was across the board
as cyclicals
(
$CYC.X |
Quote |
Chart |
News |
PowerRating), biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), brokers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating),
oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating) and retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) all had good percentage
up moves. You have to respect breadth of price, even if it’s on average volume.
I’m looking for any of three kinds of temporary bottoms: a 1 2 3 higher, double
bottom, or a 1 2 3 lower, and we haven’t had any of them yet. If this is to be a
sustained move into year-end, that will happen.
Stocks
Today
(
SEPR |
Quote |
Chart |
News |
PowerRating),
(
TEVA |
Quote |
Chart |
News |
PowerRating),
(
FRX |
Quote |
Chart |
News |
PowerRating) and
(
UNH |
Quote |
Chart |
News |
PowerRating), they’re all from yesterday and had good moves on good
volume. In the semis, be both ways,
(
NVLS |
Quote |
Chart |
News |
PowerRating), which gave us a nice Trap Door
move yesterday,
(
INTC |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating), also
(
NVDA |
Quote |
Chart |
News |
PowerRating), which
gave us an excellent move on an opening reversal yesterday. It only traded 75%
of its volume and was up 6.4% and is pushing up to its 50-day moving average.
Let the buyer beware. Look for good intraday shorts if you get it.
Also
(
TXN |
Quote |
Chart |
News |
PowerRating) and
(
ADI |
Quote |
Chart |
News |
PowerRating). They’re both pushing up to their 50-day EMA. And then take a look at
(
RFMD |
Quote |
Chart |
News |
PowerRating).
Other stocks:
(
SIAL |
Quote |
Chart |
News |
PowerRating),
(
CEPH |
Quote |
Chart |
News |
PowerRating),
(
ICOS |
Quote |
Chart |
News |
PowerRating),
(
BCC |
Quote |
Chart |
News |
PowerRating) and
(
AL |
Quote |
Chart |
News |
PowerRating).
Have a good trading day.
Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Wednesday’s NYSE TICKS
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