Some Ideas For Any Follow Through Today
Option
expiration brought volatility and opportunity.
We got the Staten Island oil spike down
from 10:00 to 10:30 a.m. ET due to futures-initiated, not Generals’, selling.
Then there was a wide-range-bar Kings & Queens pattern, which was also an RST
long entry, above 834.93. That carried to an 852.28 intraday high. The beat goes
on.
Here we are desperate to
see the economy get going, and it is, it’s just that no liberal newspaper is
going to acknowledge it. And then Friday they tell us that consumers are worried
about inflation, etc. No growth one day, inflation the next. The media is
simply, and pathetically, amazing.
The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s gave you
an opportunity on the pullback to the intersection, which is 24.68 – 24.50. The
intraday low for the QQQs was 24.51. They rallied back to a 25.37 intraday high,
closing at 25.20. The .382 retracement to 28.79 is 25.34, and that’s where we’ve
been stymied for the last four days. That makes the four-day consolidation range
after the gap day on Feb. 18. All of the major indices had similar outside-day
patterns.
It wasn’t a big volume
expiration Friday, with NYSE volume at 1.36 billion, volume ratio good at 72,
and breadth at a positive +1329. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) and Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating)
each gained +1.3%, while the NDX
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) and Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
finished +1.4%.
Of the stocks mentioned
in
Thursday’s commentary —
(
AMGN |
Quote |
Chart |
News |
PowerRating),
(
SYMC |
Quote |
Chart |
News |
PowerRating),
(
APA |
Quote |
Chart |
News |
PowerRating) and
(
PD |
Quote |
Chart |
News |
PowerRating),
which broke out of a triangle –all made moves.
(
HD |
Quote |
Chart |
News |
PowerRating), which was my
bottom-fishing Generals’ stock, advanced 4.0%.
(
PCAR |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating) and
(
APOL |
Quote |
Chart |
News |
PowerRating) should certainly be on your trading list again today, as all three
had top-of-the-range closes near breakout points. When I see a stock that sets
up in a good daily chart pattern, I always look for a good intraday setup that
would be below, in this case Friday’s, highs. That is entry at the lowest common
denominator, then you can decide what you want to do on the breakout above
Friday’s high. Keep in mind that any stocks that have broken out or have made a
move, you stay in them every day even though I don’t repeat them here on the
list.
The
(
SMH |
Quote |
Chart |
News |
PowerRating)s closed
essentially flat at 23.04, and the last four closes, which are 23.04, 23.00,
22.76 and 22.98, are fighting the 50-day EMA, which closed Friday at 22.98. If
it can get through the 50-day EMA, the SMHs can run to 23.80, which is the
89-day EMA level.
The market has traded by
the numbers since the July 24 bottom from both a trading day count and also
bounces off key retracement levels, so in the absence of real news, this
short-term uptrend can continue.
Friday’s commentary has the potential QQQ levels that can be attained. The
SMH and QQQs have maintained a higher relative strength during this reflex,
relative to the
(
SPY |
Quote |
Chart |
News |
PowerRating),
(
DIA |
Quote |
Chart |
News |
PowerRating),
(
MDY |
Quote |
Chart |
News |
PowerRating),
(
IWM |
Quote |
Chart |
News |
PowerRating) and
(
IJR |
Quote |
Chart |
News |
PowerRating).
On any follow through
today, PCAR, APOL and JNPR remain in interesting patterns, along with [ZMH|ZMH|],
(
LXK |
Quote |
Chart |
News |
PowerRating),
(
ZION |
Quote |
Chart |
News |
PowerRating),
(
NBR |
Quote |
Chart |
News |
PowerRating),
(
ROK |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating) on a re-cross of the 200-day EMA,
(
MCHP |
Quote |
Chart |
News |
PowerRating), [MEDI|,MEDI],
(
ADBE |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating)
and
(
NOC |
Quote |
Chart |
News |
PowerRating). Keep your eyes on
(
MSFT |
Quote |
Chart |
News |
PowerRating) and
(
INTC |
Quote |
Chart |
News |
PowerRating) as a guide to the
QQQs.
Have a good trading day.
Five-minute chart of
Friday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Friday’s NYSE TICKS