The Travel Range Train
The
Techs didn’t follow through from
their pullback setups as stocks like
(
NEWP |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating) and
(
JNPR |
Quote |
Chart |
News |
PowerRating)
took out Wednesday’s highs, then reversed, closing in the bottom of their
ranges. For those of you who have read the TradingMarkets Guide to the markets,
they went from 1,2,3,4 buy setups to 180 sell setups today. As
I mentioned in yesterday’s text, second entry is the better part of valor in
this kind of tape. Nevertheless, these travel range stocks continue to provide
outstanding daytrading opportunities.Â
In Tuesday’s
text I said that if the rally continues, I like tech, energies and brokers
of the major sectors. Yesterday the techs tanked but the energies and brokers
did finish green with the XBD +2% and the OSX +5.4%. The SPX was +0.5%, the Dow
+0.6% led by the Basics, the NDX was -2.8% with the SOX down 3.6%.
On Monday, I will include
the daily charts of
(
LEH |
Quote |
Chart |
News |
PowerRating) and
(
MER |
Quote |
Chart |
News |
PowerRating) as I thought they provided the best
of the broker setups on the daily charts because they were all above their EMAs.
MER also gave you an excellent short from a two and a half hour Slim Jim at its
highs. I will also include the five-minute chart with the Slim Jim for your
records.
You make money with the
tools you can use, not opinions. If you can identify the buying and selling
pressure, and utilize the Change in Direction or continuation patterns, you will
be on the correct road, provided you realize it’s a numbers game not an ego game
which interferes with your management of risk. With
the way these travel range stocks are trading, you can lose 1/2 on six trades
and make 3 points each on two others and still net +3. Don’t think of them as
losing trades, because they are just probes to catch the multipoint moves.
Stocks
Today
|
(June
|
||
|
Fair Value
|
Buy
|
Sell
|
|
5.30
|
 6.60 |
 4.10Â
|
Let’s take the NDX 100
screen, turn it upside down and start with the stocks that were down the most
yesterday. Most all of these stocks finished in the bottom 25% of their ranges
so you know where the continuation shorts start:
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
JDSU |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
QCOM |
Quote |
Chart |
News |
PowerRating),
(
VRTS |
Quote |
Chart |
News |
PowerRating),
(
CHKP |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
BEAS |
Quote |
Chart |
News |
PowerRating),
(
SEBL |
Quote |
Chart |
News |
PowerRating),
(
NEWP |
Quote |
Chart |
News |
PowerRating)
and
(
VRSN |
Quote |
Chart |
News |
PowerRating).
I must note the volume was
very light in many of these stocks like MERQ (62% of its 30-day average daily
volume), CHKP 71% and BEAS 65%. Only JDSU, CIEN and QCOM had more than 100% of
their average 30-day volume.
In the Semis,
(
NVLS |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
MU |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating) and also
(
BRCM |
Quote |
Chart |
News |
PowerRating) (which is getting very
interesting as it tries to come up out of the top of the base down here). So far
these are the same Semis but it is the same story. There are great intraday
setups and there is institutional interest so we will ride them until they die
on us.
In the Brokers,
(
LEH |
Quote |
Chart |
News |
PowerRating),
(
MER |
Quote |
Chart |
News |
PowerRating) and
(
GS |
Quote |
Chart |
News |
PowerRating) all had good intraday ranges so keep them on your radar.
In the Financials,
(
PVN |
Quote |
Chart |
News |
PowerRating),
(
CLF |
Quote |
Chart |
News |
PowerRating) and
(
FITB |
Quote |
Chart |
News |
PowerRating). In the energies look
for pullback setups in some of the Bush drillers that had thrusts yesterday such
as
(
CAM |
Quote |
Chart |
News |
PowerRating),
(
DO |
Quote |
Chart |
News |
PowerRating) and
(
NE |
Quote |
Chart |
News |
PowerRating). Also
(
BHI |
Quote |
Chart |
News |
PowerRating) and
(
HAL |
Quote |
Chart |
News |
PowerRating) which had big
moves. You now have the XLEs
bumping up against their highs. In the Basics and Industrials, focus on
(
MMM |
Quote |
Chart |
News |
PowerRating),
(
TYC |
Quote |
Chart |
News |
PowerRating),
(
DE |
Quote |
Chart |
News |
PowerRating),
(
WY |
Quote |
Chart |
News |
PowerRating),
(
DOW |
Quote |
Chart |
News |
PowerRating) and
(
AL |
Quote |
Chart |
News |
PowerRating).
Have a good trading day
and have a a better weekend.
