The Only Strategy That Matters
The
Nasdaq’s
(
$COMPX |
Quote |
Chart |
News |
PowerRating) negative divergence carried over, as
it closed at 1645, -2.0%, along with the NDX 100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) which was
-3.3%. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating), led by the basics, finished +32 points, while the
SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) essentially pushed.
The sector red on the
board was from the biotechs’ -3.5%, and the
(
BBH |
Quote |
Chart |
News |
PowerRating)s have yet to trade above
the high of the low day, or below the low for that matter. Oversold looking like
it wants to get more oversold before it gives us an RST entry.
The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) was dismal, making another low closing at 504.05, or -4.4% on
the day, and is right at the bottom of its six-month trading range. Stocks like
(
KLAC |
Quote |
Chart |
News |
PowerRating) and
(
NVLS |
Quote |
Chart |
News |
PowerRating) are right on their rising 200-day EMAs, with KLAC
closing at 55.21 vs. the 200-day at 55.17, and NVLS closing at 45.63 vs. its
44.78 200-day EMA. If the Generals are going to show up, this is the level that
it will happen.
The
(
SMH |
Quote |
Chart |
News |
PowerRating)s closed at
39.90, and unlike the
(
QQQ |
Quote |
Chart |
News |
PowerRating)s, have yet to even get down to the .50
retracement to the September low, which would be 38.75 on the SMHs. There is
some confluence within a point, which includes 39.52 which is the 1.618
extension of the leg from 42.80 to 48.10 and also 38.71, which is the 1.27
extension of the 50.19 high to 42.80 leg. The .618 retracement is down at 36.05.
Keep in mind the SMHs rallied 84% off the September low of 27.31 to the March 8
50.19 high. That was some six-month move, and on a percentage basis, the SMHs
have only given back 20% of that gain. Don’t fill in the grave yet, folks, and
you must be alert for a reversal setup in this zone.
The basics, in spite of
the green day, are at the bottom of their recent trading ranges, or else have
pulled back to their 200-day EMAs. See
(
AA |
Quote |
Chart |
News |
PowerRating),
(
AL |
Quote |
Chart |
News |
PowerRating),
(
CAT |
Quote |
Chart |
News |
PowerRating),
(
DE |
Quote |
Chart |
News |
PowerRating) and
(
DD |
Quote |
Chart |
News |
PowerRating) just to name a few. They are also in decent positions for an oversold
rally bounce.
I am doing this Thursday
night and will be on the road Friday, so I don’t know what the magical nothing
is that will be spewed from the media’s empty suits on Friday morning. The only
strategy that matters on Friday is that if you see them coming to spend some
money, get on board with tight stops for the entire day.
Stocks
Today
Daily chart setups:
(
UTX |
Quote |
Chart |
News |
PowerRating),
(
EMN |
Quote |
Chart |
News |
PowerRating),
(
BCC |
Quote |
Chart |
News |
PowerRating),
(
ITW |
Quote |
Chart |
News |
PowerRating),
(
MAS |
Quote |
Chart |
News |
PowerRating) and
(
FLR |
Quote |
Chart |
News |
PowerRating).
In the financials, which
have done very well over the last few days,
(
WFC |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating) and
(
CNA |
Quote |
Chart |
News |
PowerRating).
Other stocks include
(
CBH |
Quote |
Chart |
News |
PowerRating),
(
LMT |
Quote |
Chart |
News |
PowerRating),
(
LEN |
Quote |
Chart |
News |
PowerRating),
(
JNJ |
Quote |
Chart |
News |
PowerRating) and
(
RSH |
Quote |
Chart |
News |
PowerRating).
In the energies,
(
SII |
Quote |
Chart |
News |
PowerRating),
(
WFT |
Quote |
Chart |
News |
PowerRating) and
(
NE |
Quote |
Chart |
News |
PowerRating).
In the semis, use the
same names from yesterday’s list, along with the
(
SMH |
Quote |
Chart |
News |
PowerRating)s. They’re in a range.
It’s just a question of whether they come for them.Â
Have a good trading day,
and have a great weekend.
Five-minute chart of
Thursday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Thursday’s NYSE TICKS