The Bungee Cord
Yesterday
was another of your all-too-frequent
earnings tech-wreck days, as the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) was off but 0.6%,
with the Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) -3.6%. New York Stock Exchange volume was above average at 1.3
billion, a volume ratio of 43, with decliners over advancers by 440. On the tech-wreck side, the Nasdaq traded less than its average volume
— due to the retail
being mostly in their bunkers with helmets on, but the volume ratio was just
18.
We continue to get great
intraday volatility in the semis and biotechs, and certainly from our recent
shorts in
(
SEBL |
Quote |
Chart |
News |
PowerRating),
(
VRTS |
Quote |
Chart |
News |
PowerRating) and
(
MERQ |
Quote |
Chart |
News |
PowerRating). With all the commotion, we
also managed to get trade-through entries with
(
BGEN |
Quote |
Chart |
News |
PowerRating) on the long side, and
(
QLGC |
Quote |
Chart |
News |
PowerRating) on the short side.
The various tech sector
indexes were all red, but we got green closes in the drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
(+3.3% with a defensive move), the biotechs
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) (+1.1%), the chemicals
(
$CEX.X |
Quote |
Chart |
News |
PowerRating) (+1.6%), the papers
(
$FPP.X |
Quote |
Chart |
News |
PowerRating) ( 0.6%), the bank index
(
$BKX.X |
Quote |
Chart |
News |
PowerRating)
(+0.8%) and the retail index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) (+0.9%). I point these out to
indicate there are sectors other than tech.
It makes no sense to dwell on
the market alert levels because you have had that in the last several days of
text. We got the rally we were
ready for from the .618 retracement levels in both the NDX and SPX, and you were
alerted to sell into the 1790-1800 resistance zone and the corresponding levels
for the SPX at 1220-1227.
Now we are all waiting to see if this selloff can
trade down to the .786 level and give us a reversal pattern setup which will
give us an excellent upside move. The key is: "Wait for a Setup and Change
of Direction Pattern," and not "Pick a Level."
|
(September
|
||
|
Fair Value
|
Buy
|
Sell
|
|
5.50
|
6.70 |
|
Stocks
Today
What we do want to do is
exactly what we did the other day, and focus on the big-percentage-down stocks
with the most increase in volume. That is where the extreme volatility is and
where the most players are right now — and that is primarily the Generals.
For lack of a better term, let’s refer to
them as today’s reflex stocks for the daytrader. Those five stocks are:
(
VRTS |
Quote |
Chart |
News |
PowerRating),
(
QLGC |
Quote |
Chart |
News |
PowerRating),
(
SEBL |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating) and
(
VRSN |
Quote |
Chart |
News |
PowerRating).
In the semis, you can
narrow your field down to:
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating) and also the
SMHs. If they come for the whole sector you can adjust to yesterday’s
list.
In the biotechs, in
addition to the BBHs, you have:
(
PDLI |
Quote |
Chart |
News |
PowerRating),
(
IDPH |
Quote |
Chart |
News |
PowerRating),
(
HCSI |
Quote |
Chart |
News |
PowerRating),
(
CEPH |
Quote |
Chart |
News |
PowerRating),
(
IMCL |
Quote |
Chart |
News |
PowerRating) and
(
BGEN |
Quote |
Chart |
News |
PowerRating).
In the financials, which
are long setups on the daily charts, you have:
(
PVN |
Quote |
Chart |
News |
PowerRating),
(
WFC |
Quote |
Chart |
News |
PowerRating),
(
AIG |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
C |
Quote |
Chart |
News |
PowerRating),
(
LEH |
Quote |
Chart |
News |
PowerRating) and
(
FNM |
Quote |
Chart |
News |
PowerRating).
In the basics:
(
AA |
Quote |
Chart |
News |
PowerRating),
(
DOW |
Quote |
Chart |
News |
PowerRating),
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating).
In the retail:
(
HD |
Quote |
Chart |
News |
PowerRating) and
(
LOW |
Quote |
Chart |
News |
PowerRating).
Other stocks:
(
NEM |
Quote |
Chart |
News |
PowerRating),
(
ABT |
Quote |
Chart |
News |
PowerRating),
(
BAX |
Quote |
Chart |
News |
PowerRating),
(
HCR |
Quote |
Chart |
News |
PowerRating),
(
LTR |
Quote |
Chart |
News |
PowerRating), and
(
TEVA |
Quote |
Chart |
News |
PowerRating).
Have a great trading day.
Five-minute chart of
yesterday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
yesterday’s NYSE TICKS
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