The Other Market
The
Generals’ perception has been
and remains that recovery is in progress for the economy as the bull market in
the basics (+2.1%) and capital goods (+2.2%) yesterday, continues.The XLBs
advanced further above all of its rising 10-, 20-, 50- and 200-day EMAs,
bolstered by the FPP (which is the forest products index) and the CEX (which is
the chemical index), along with stocks like
(
AA |
Quote |
Chart |
News |
PowerRating),
(
CAT |
Quote |
Chart |
News |
PowerRating) and
(
DE |
Quote |
Chart |
News |
PowerRating).
Not exactly like trading
(
JNPR |
Quote |
Chart |
News |
PowerRating) but
you take what’s given to you. If the Generals are there, you should be riding
the train.
The energies continue their
bull run with most of the oil well services and equipment all making
continuation breakouts over the past three days. Needless to say, the OSX and
XOI are obviously running well above all of their rising 10-, 20-, 50- and
200-day EMAs. The new oil service HOLDRs has been trading since Feb. 7 and the
volume is starting to expand, so take a look at that for a way to play it.
(
HAL |
Quote |
Chart |
News |
PowerRating),
(
NE |
Quote |
Chart |
News |
PowerRating),
(
CAM |
Quote |
Chart |
News |
PowerRating)
and
(
DO |
Quote |
Chart |
News |
PowerRating) all ran for us yesterday and the familiar
(
APC |
Quote |
Chart |
News |
PowerRating) and
(
APA |
Quote |
Chart |
News |
PowerRating)
had continuation gap up moves yesterday.
(
AA |
Quote |
Chart |
News |
PowerRating)
and
(
AL |
Quote |
Chart |
News |
PowerRating) both came out the top for us, along with good trades in
(
BA |
Quote |
Chart |
News |
PowerRating) and
(
ROK |
Quote |
Chart |
News |
PowerRating) which ran a point but closed back in the range. Take
it if it breaks out of the base again today.
The semis which are
extended short term backed off, and our favorite stock,
(
MU |
Quote |
Chart |
News |
PowerRating), gave us a good
short side trade. It opened down 1.60 at 43, then ranged out between 43 and 42,
until you got good short entry below 42 to new intraday lows on the 2:15 p.m.
bar. It traded down to 40.60 and
closed at 41. Those of you who
have attended my seminars probably took it short from an early 1,2,3 entry below
42.60 on the breakout of the Slim Jim because it also broke below the 8-period
moving average of the low.Â
The XLFs — which have
retraced to the 200-day EMA — closed yesterday on a wide-range outside bar,
with a close in the top of the range and above its 10-, 20- and 200-day EMAs.
That means we also want some financials in today’s plan.
Pattern
Setups
I’ll give you a lot more
stocks — just to give you a cross-section of the charts and take a look at
what’s going on in everything, except for the myopic look at the Nasdaq.Â
In
the financials,
(
XLF |
Quote |
Chart |
News |
PowerRating),
(
JPM |
Quote |
Chart |
News |
PowerRating),
(
LEH |
Quote |
Chart |
News |
PowerRating),
(
GS |
Quote |
Chart |
News |
PowerRating),
(
MWD |
Quote |
Chart |
News |
PowerRating) (which gave us an RST buy entry a few days ago —
look for any kind of pullback to the gap),
(
AFL |
Quote |
Chart |
News |
PowerRating),
(
STI |
Quote |
Chart |
News |
PowerRating),
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
PVN |
Quote |
Chart |
News |
PowerRating),
(
COF |
Quote |
Chart |
News |
PowerRating) (on a recross of the 200).Â
In
the capital goods, look at
(
PH |
Quote |
Chart |
News |
PowerRating),
(
IR |
Quote |
Chart |
News |
PowerRating),
(
CBE |
Quote |
Chart |
News |
PowerRating) and
(
FLR |
Quote |
Chart |
News |
PowerRating).
In
the basics, you’ve got to keep AA and AL on your chart but look for any kind of
second entry continuation or a pullback. Also
(
GP |
Quote |
Chart |
News |
PowerRating),
(
IP |
Quote |
Chart |
News |
PowerRating),
(
DOW |
Quote |
Chart |
News |
PowerRating) and
(
BA |
Quote |
Chart |
News |
PowerRating). In the retail look at
(
COST |
Quote |
Chart |
News |
PowerRating).Â
Oil
Services:
(
HAL |
Quote |
Chart |
News |
PowerRating),
(
CAM |
Quote |
Chart |
News |
PowerRating),
(
DO |
Quote |
Chart |
News |
PowerRating),
(
NE |
Quote |
Chart |
News |
PowerRating),
(
RIG |
Quote |
Chart |
News |
PowerRating),
(
SII |
Quote |
Chart |
News |
PowerRating) and
(
BJS |
Quote |
Chart |
News |
PowerRating).
In
the Semis: Look at
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
AMAT |
Quote |
Chart |
News |
PowerRating) and
(
NVLS |
Quote |
Chart |
News |
PowerRating). Also MU on any kind of pullback to
the 50-day EMA which is 40.
My
computers are down right now so there will be no Program Numbers today.
 Have a good trading
day.
