Slim Jim Asset

• December 18, 2001
• Kevin Haggerty

The
SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) trended up from
the opening bell to an 1136.37 high, then went sideways for the remainder of the
session, closing at 1134.36, +1.0% from the previous close of 1123.07. The NDX
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) rallied from the previous close of 1605.67 to 1624.64 by the
10:25 a.m. bar, then went sideways until another trend up at 1:00 p.m., taking
it up to a 1654.45 intraday high on the 2:25 p.m. bar, closing at 1640.34.
Things happen around this 2:25 time period. On Friday, the NDX had a sharp rally
from 1597 to 1623 starting on the 2:25 bar. Love the program gang. They’re a Slim
Jim trader’s best asset. The NDX closed at 1640.34, +2.2% on the day. NYSE
volume was just average at 1.236 billion, a volume ratio of 60, and breadth
positive at +406.

We had another excellent
day in our biotechs, like
(
GILD |
Quote |
Chart |
News |
PowerRating),
(
ICOS |
Quote |
Chart |
News |
PowerRating) and
(
IDPH |
Quote |
Chart |
News |
PowerRating). The
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) was +4.0%, and of course, the
(
BBH |
Quote |
Chart |
News |
PowerRating)s rallied strongly as
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) made a big move after the re-evaluation of terms for the
(
IMNX |
Quote |
Chart |
News |
PowerRating) deal. Amgen is the largest weighted stock in the BBH holders.

We should be ready for
another continuation day in some of the biotechs just in case some of the
“late to the party” momentum players show up. For example, GILD, after
a pullback to the 100-day EMA, has advanced 12% in four sessions. Stay away from
early first entries in the biotechs, but take the second entry with a tight
stop.

Both the NDX and
(
$DJX.X |
Quote |
Chart |
News |
PowerRating) closed above their 30-week EMAs, with the DJX right on it at
98.92, and the NDX at 1640 vs. the 30-week at 1617. There is no weekly
divergence in the 14-period RSI for any of the major indices. The SPX closed at
1134 vs. its 30-week of 1149, which is the beginning of the first confluence of
resistance from 1150-1160. I expect the
(
SPY |
Quote |
Chart |
News |
PowerRating)s to run into resistance from
115-116 based on the 60-minute chart and would be very interested in any buy
setups between 111-112 if we get a flash down.

Stocks
Today

In the semis, the
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) was +2.7% yesterday. Look at
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
NVLS |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
INTC |
Quote |
Chart |
News |
PowerRating) and
(
BRKS |
Quote |
Chart |
News |
PowerRating). In
the three “game” stocks, and I consider the game stocks the ones
they’re playing beachball with,
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
GNSS |
Quote |
Chart |
News |
PowerRating) and
(
QLGC |
Quote |
Chart |
News |
PowerRating). Use
intraday setups only, as they present themselves.

In the biotechs,
(
GENZ |
Quote |
Chart |
News |
PowerRating),
(
IDPH |
Quote |
Chart |
News |
PowerRating),
(
DNA |
Quote |
Chart |
News |
PowerRating) and
(
BGEN |
Quote |
Chart |
News |
PowerRating) in case they take it through
its 200-day EMA.

In the big caps, which
have been very good to us, again, look at
(
IBM |
Quote |
Chart |
News |
PowerRating),
(
MSFT |
Quote |
Chart |
News |
PowerRating) and
(
MMM |
Quote |
Chart |
News |
PowerRating),
and of course, I had mentioned INTC up there with the semis.

Other stocks:
(
BAC |
Quote |
Chart |
News |
PowerRating),
(
PLXS |
Quote |
Chart |
News |
PowerRating),
(
IGT |
Quote |
Chart |
News |
PowerRating),
(
WLP |
Quote |
Chart |
News |
PowerRating),
(
VAR |
Quote |
Chart |
News |
PowerRating),
(
SNPS |
Quote |
Chart |
News |
PowerRating),
(
ADP |
Quote |
Chart |
News |
PowerRating) and
(
EDS |
Quote |
Chart |
News |
PowerRating).

On the short side, if
they start to turn ’em red, look at
(
MWD |
Quote |
Chart |
News |
PowerRating) and
(
LEH |
Quote |
Chart |
News |
PowerRating) in the brokers, and
(
RFMD |
Quote |
Chart |
News |
PowerRating) in the semis. Of course, you always have the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s,
(
SPY |
Quote |
Chart |
News |
PowerRating)s
and the
(
DIA |
Quote |
Chart |
News |
PowerRating)s. 

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