Slim Jim Day

• December 21, 2001
• Kevin Haggerty

Yesterday’s
NYSE volume was once again on the heavy side at
1.435 billion, but the volume ratio declined to 39 from 58. Breadth was -576,
and virtually all of the NDX 100
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mid-point. We had it all yesterday, both long and short. Early on in the day, we
got continuation entries in our energy and retail. Then there were some downside
Slim Jims in many stocks across the board for the rest of the day.

For the SPX
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it was another narrow-range day that had just an 11 1/2 point spread high to
low, closing at 1140. The 20-day EMA is 1138.43, and the 50-day EMA is 1127.51.
After a 24% rally in the SPX since the September low, it’s only off -2.9% from
the high, in spite of the downside noise from the
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semis. 

The Nasdaq Composite
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and NWX had another ugly day, but any unsettling news is always magnified at key
alert zones after an extended move. The NWX advanced 87% to find resistance at
its 200-day moving average, as did the Nasdaq Composite at 2066. The NWX closed
at 299, down 20% from its 376 high with the same culprits making noise, such as
Juniper’s
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The SOX, after its second
daily wide-range bar down following
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MU |
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its 590 high. This is after a 72% advance from the September low. Net net, they
had bid these techs up too fast and too high on little more than perception. The
semis are setting up for a reflex rally into year-end.

The
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38.68, and the 89-day EMA at 38.56. So we’ve got a little confluence there.

There were many good
trades from the various volatility bands yesterday, which also had the QQQs out
to the 2.0 volatility band zone of 38.73. The .38 retracement to the September
low is 37.14. After yesterday’s close of 38.79, the QQQs are down 10% after a
59% run from the September low. That shouldn’t be a problem if you got hedged
into the key alert zones on your longer-term positions.

Today is Triple Witch, so
it is jump ball. My suggestion is to put your Slim Jim hat on and wait for any
games by the program gang. It’s not the day to have opinions locked in stone.
After today, you’ll have a half day on Monday and then just three trading days
into year-end.

Stocks
Today

Daily chart long setups:
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BAX |
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PHA |
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ADP |
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PX |
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EDS |
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BRL |
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GDT |
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MDT |
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it’s in storage technology,
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HOTT |
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MI |
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STT |
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On the shortside:
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HGSI |
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SWY |
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CAH |
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EASI |
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On Monday, if it’s above
40 degrees here in New York, I will hit the links and bag the half day, so if I
don’t talk to you all, have a very Merry Christmas and Happy Holiday. 

Have a good trading day.

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

Five-minute chart of
Thursday’s NYSE TICKS