Semis Outperform NDX
In both
the Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) and S&P 500Â
(
SPX |
Quote |
Chart |
News |
PowerRating) yesterday, you got the gap down opening, contra move up, Fib
retracement down, then an uptrend for the remainder of the session.Â
There were good moves in
many of the stocks yesterday — the Semis, Biotechs, Chosen Ones and Brokers
were green all day, while the Banks had good runs early, then faded some into
the close.
The S&P 500 is bumping
up against the .618 retracement to the 1438 high. The 200-day EMA is 1391 and
the .786 retracement is 1399. The RSI is at 80 but no negative divergence yet.
The SOX closed at 715.45, +3.3% on the day, and is in an eight-bar
consolidation. Pullback to around the 50-day EMA of 630 shouldn’t surprise you
after a reversal in the SPX and NDX.Â
Yesterday’s action gave you
more continuation setups for today, so if you get them take them, and as always,
with tight stops. If you don’t get them, no entry no loss. Volume was lighter
yesterday at 1.1 billion with a volume ratio of 65 and advancers over decliners
by +764.Â
The Semis continued to
outperform the NDX when they set up.
(
AMD |
Quote |
Chart |
News |
PowerRating) popped 7.6%,
(
TXN |
Quote |
Chart |
News |
PowerRating) +5.9%,
(
TER |
Quote |
Chart |
News |
PowerRating)
+4.9%,
(
AMAT |
Quote |
Chart |
News |
PowerRating) +4.8%,
(
MCHP |
Quote |
Chart |
News |
PowerRating) +5.1%, and
(
ATML |
Quote |
Chart |
News |
PowerRating)
was +4.9%. The
SMHs closed at 58.15, bumping up to the top of their base at 60. The SMH volume
was extremely light, so beware.Â
You have month-end
Wednesday, along with your Federal Reserve friend, so
I am sure we will get another overreaction to play shortly. Be alert for the
first close in the bottom of the range on the SPX and NDX and a continuation the
following day to end this run short term.
Pattern
Setups
From the daily charts, in
the Semis:
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
TER |
Quote |
Chart |
News |
PowerRating),
(
INTC |
Quote |
Chart |
News |
PowerRating),
(
NVLS |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
AMCC |
Quote |
Chart |
News |
PowerRating),
(
AMD |
Quote |
Chart |
News |
PowerRating),
(
ADI |
Quote |
Chart |
News |
PowerRating),
(
GSPN |
Quote |
Chart |
News |
PowerRating),
(
VTSS |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating) and
(
MU |
Quote |
Chart |
News |
PowerRating).Â
In the Biotechs,
(
PDLI |
Quote |
Chart |
News |
PowerRating),
(
MLNM |
Quote |
Chart |
News |
PowerRating),
(
GENZ |
Quote |
Chart |
News |
PowerRating),
(
HGSI |
Quote |
Chart |
News |
PowerRating),
(
IDPH |
Quote |
Chart |
News |
PowerRating).Â
Chosen Ones:
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
CMVT |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating) and
(
BEAS |
Quote |
Chart |
News |
PowerRating).Â
Other stocks to focus on:
(
COF |
Quote |
Chart |
News |
PowerRating),
(
NT |
Quote |
Chart |
News |
PowerRating),
(
ADI |
Quote |
Chart |
News |
PowerRating),
(
GS |
Quote |
Chart |
News |
PowerRating) and
(
EMC |
Quote |
Chart |
News |
PowerRating).Â
The closing range for the
SPX was 1366-1362 and for the NDX it was 2697-2682. You start your plan today
coming out of this range. I am writing this on Monday evening as I will not be
in the office Tuesday morning, so will try to include the program numbers later.
Have a good trading day.