Take Your Lead From The Generals
NYSE
volume dropped to just 888 million on Friday going
into the holiday weekend. This is the lowest NYSE volume of the year. The
Generals are on the sidelines, as uncertainty prevails, which markets never
like. Goldman Sachs switched sides on the semi equipment stocks again, as the
downgrade led the
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$SOX.X |
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the program gang and accelerators when the Generals are not involved.
On the day, the Dow
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$INDU |
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$SPX.X |
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$COMPX |
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$NDX.X |
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the equipment stocks was accomplished on the opening, as usual, then they went
sideways for the remainder of the session. It was a strange day for a downgrade
by Goldman Sachs that 10 days ago was on the other side. Looks like analysts are
playing market timing again, as their credibility disappears by the day.
The downside emotion will
once again set up a good trading opportunity for us, so the semis should be on
your alert list if they sell down from here. I focus specifically on
buying/selling pressure and extreme reactions, regardless of the direction, so
after Friday’s action, I don’t see anything compelling going into today. We
now have the end of the month and first few days of the new month, which very
often is profitable from the long side, so we will take our lead from the
Generals when and if they show up this week.
The oil service stocks
stuck their heads up a bit on Friday after the recent pull back, so watch for
continuation trades in
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NBR |
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NE |
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RIG |
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WFT |
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at
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APA |
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Some other stocks are
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EMMS |
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PECS |
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BBH |
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Friday, look at
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GILD |
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IDPH |
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GENZ |
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back for some of them.
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