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  • June 11, 2002
  • Kevin Haggerty

It was
a mixed bag yesterday on
lighter NYSE volume at 1.2 billion, the volume ratio still positive at 55, and
breadth +75. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed right under the .618 1033 number at
1030.74, or +0.3%. It was trading at 1038 until the Program Gang hit the tape
once again in the familiar late-day time slot. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) finished
+0.6%, while the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) closed at 1531, down -0.3% on the day.
The Nasdaq had a significant decline in volume to 1.5 billion from the 2.1
billion on Friday.

The drug sector led at
+1.8%, due in part to the weaker dollar. If you were scrolling this sector,
there were some excellent intraday setups, such as the Slim Jim in Merck
(
MRK |
Quote |
Chart |
News |
PowerRating)
which carried non-stop from 53 to 54.90 after the breakout, and then fading in
the last half-hour with the programs to close at 54.30. See your five-minute
chart for future Slim Jim reference.

In this Dr. Jekyll and
Mr. Hyde market, it is imperative that you should scroll more than usual in
order to find intraday ideas because there are plenty of them each day. However,
there is no consistency/follow through in many names that set up each day on the
daily charts because there is too much noise, so it continues to be a better
decision to take second entries on your setups. If you have a strong feeling on
a stock and decide to position it overnight, look at the in-the-money call as a
stock substitute because you at least have a defined risk. I must say, don’t
trade the options without an option education. 

I would expect this
reflex rally to continue higher, probably in a good news/bad news fashion, so be
ready to take intraday entries at the lowest common denominator with tight
stops. You can’t be heroes overnight when meltdowns are just a world event away,
so continue to stick with the index proxies and sector HOLDRs.

Stocks
Today

On the buy side:
(
LMT |
Quote |
Chart |
News |
PowerRating),
(
NOC |
Quote |
Chart |
News |
PowerRating),
(
RTN |
Quote |
Chart |
News |
PowerRating),
(
VAR |
Quote |
Chart |
News |
PowerRating),
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
CMA |
Quote |
Chart |
News |
PowerRating),
(
YUM |
Quote |
Chart |
News |
PowerRating),
(
WFMI |
Quote |
Chart |
News |
PowerRating),
(
EC |
Quote |
Chart |
News |
PowerRating),
(
EMN |
Quote |
Chart |
News |
PowerRating),
(
JNY |
Quote |
Chart |
News |
PowerRating),
(
KSS |
Quote |
Chart |
News |
PowerRating),
(
FDO |
Quote |
Chart |
News |
PowerRating),
(
CHBS |
Quote |
Chart |
News |
PowerRating),
(
TRI |
Quote |
Chart |
News |
PowerRating),
(
THC |
Quote |
Chart |
News |
PowerRating),
(
ITT |
Quote |
Chart |
News |
PowerRating) and
(
SNPS |
Quote |
Chart |
News |
PowerRating).

Also,
(
SCIO |
Quote |
Chart |
News |
PowerRating),
(
CYMI |
Quote |
Chart |
News |
PowerRating),
(
JNJ |
Quote |
Chart |
News |
PowerRating) and
(
NCC |
Quote |
Chart |
News |
PowerRating).

In the semis, scroll yesterday’s
list intraday, along with the
(
SMH |
Quote |
Chart |
News |
PowerRating)s, and add
(
TXN |
Quote |
Chart |
News |
PowerRating) on a re-cross of
the 50-day EMA.

You can see from the list
we certainly have to look at some of the mid-cap names because those are most of
the stocks that are trading above the lines.  

Have a good trading day.

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

Five-minute chart of
Monday’s NYSE TICKS