Thank You, Futures…Again

The
futures game in the afternoon
made
it a bonus day for daytraders yesterday. The early trading was good enough, as
we got some excellent V Band trades in stocks like
(
MSFT |
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at the 2.0 band
and
(
ADI |
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at the 1.5 band, both good for multi-point moves which were
accelerated by the futures in the afternoon.

The SPX
(
$SPX.X |
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was also a V Band trade from the 1.5 band with a Three-Day Wake Up Call entry
after the 11:00 a.m. bar (see my
screens
for the definition of this). If you didn’t take that one, a Slim Jim
between 1144 and 1146 gave you a second entry, and if you were asleep at the
switch, you got a third entry from the Slim Jim between 1146 and 1148. It was
this entry that exploded, as futures made the artificial move we always get
before and after media-hype announcements. If you didn’t take any of the three
entries, then get a job.

I hope most of you
sequence traders who have attended my seminar took the first entry because it
was a confluence of three alerts. You had the 1.5 V Band at 1140, the 1140.81
intraday low was also the 1.27 extension of the leg up on Nov. 26, and also the
.618 RT to the Nov. 21 low. Loaded with that alert information, the first entry
was easy to take when you saw it.

I must point out to you
that each significant high and low since Nov. 21 has been a sequence number and
two of the highs came in conjunction with the resistance levels I have given
you. The first was the 144-day EMA at 1155, and the second was at the
square-9/natural square levels of 1157-1156.

Yesterday’s afternoon
flash by the futures that hit 1163.38 before the late crash was at the 1.27
extension of the previous leg down using the 1157.88 top of Nov. 26 and
yesterday’s intraday low of 1140.81. The late knife down was preceded by a
reversal bar at the extension level, a 1 2 3 close entry below 1160 and a 1 2 3
lower-top entry below 1158. The SPX traded down to 1146 before closing at
1149.50. My case rests for sequence trading combined with V Bands and defined
entry patterns.
My next seminar is
in mid-February in Southern California, and information will posted on the site
soon.

With many of the semis
getting squeezed, we also got some outstanding Slim Jim explosions in stocks
like
(
QLGC |
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,
(
GNSS |
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, 
(
KLAC |
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above 49.50, and
(
BRCM |
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,
just to name a few. Keep on scrolling your way to high-probability trades.

Yesterday’s volume in
many of the semis was outstanding. We got a quick 1 point short in the
(
SMH |
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s by fading them at the .618 level, in addition to the 44.76 high.
Yesterday’s high was 44.75, and you got a double-top short entry below 44.40.
They traded down to 43.35, closing at 43.66. With that volume yesterday, we have
to assume that they will be back soon to try and take out the 44.76 high. The
30-week EMA is 42.76, and the 10-week is 40.34. The 30-week EMA has flattened
out. Yesterday’s close was also right at the weekly down trendline from the May
high.

You won’t have to look
past semis
(
$SOX.X |
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and biotechs
(
$BTK.X |
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for ideas, and you
should also include the brokers
(
$XBD.X |
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who are also above a rising
30-week EMA of 467, having closed at 498. I assume RT’s/pullbacks in these three
sectors will bring the Generals back in size. It will take overt war news to
prevent these sectors from making a higher low on any retest, and I would expect
the retest will be a shallow one.

Stocks
Today

I see early red in all
the futures, but stay with these following semis for intraday action:
(
KLAC |
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,
(
GNSS |
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,
(
QLGC |
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,
(
NVDA |
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,
(
ISIL |
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,
(
RFMD |
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,
(
MCHP |
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and
(
MU |
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.

In the brokers,
(
LEH |
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,
(
MWD |
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and
(
GS |
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.

In the biotechs,
(
IDPH |
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,
(
MEDX |
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,
(
ABGX |
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,
(
CELG |
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and
(
DNA |
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.

Other stocks that you
might focus on that set up are
(
DOW |
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,
(
IP |
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,
(
MMM |
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,
(
SLB |
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,
(
BJS |
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and
(
WL |
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.

Also, on the short side,
I’d stay with the proxies. There’s nothing set up on the short side on the
dailies in the proxies, so any kind of short trades will be from the intraday
charts. 

Have a good trading day.

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

Five-minute chart of
Tuesday’s NYSE TICKS

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