These Stocks Have Been A Real Profit Center
What Wednesday’s Action Tells
You
The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed at 1193.19,
+0.3%,
after making an 1195.25 intraday high. Range narrowed for the second day to
6.3
points. NYSE volume also declined to 1.59 billion shares, as did the volume
ratio to 66 and breadth to +854. The 4 MA of the volume ratio is now 64 and
breadth +925, both of which are short-term overbought.
The primary sectors were led by the
(
OIH |
Quote |
Chart |
News |
PowerRating),
+1.7%, as the entire energy sector went green today. Suffice to say,
daytraders
have smiles on their trading faces again as these stocks have been a real
profit
center during this move following another retracement to the rising 50-day
EMA.
Banks and brokers finished red, with the CYC and RTH more in line with the
SPX
and Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) on the plus side. The
(
SMH |
Quote |
Chart |
News |
PowerRating) was -0.6% with the XBD
-0.7%.
Traders had the same SPX setup as the
previous
day with a breakout of range at 1190.39, the previous intraday high, on the
10:35 a.m. ET bar, but it just ran to 1192.89, then went sideways and did not
hit 1195.25 until the 2:25 p.m. bar. That was no more than watching paint
dry.
There were multiple energy trade-through
entries
yesterday, as well as range breakouts to new highs, such as
(
NCR |
Quote |
Chart |
News |
PowerRating), +2.4%
from entry.
The SPX has a price and retracement level
from
1195 – 1198, while the
(
QQQQ |
Quote |
Chart |
News |
PowerRating) resistance is 37.80 – 37.85, then 38 –
38.20.
My guess is that the QQQQ will struggle to get past the 38 – 38.90 price range
on this current reflex.
This is being recorded Wednesday night for
Thursday, but if the State of the Union reaction is exaggerated either way,
make
sure you play those
Trap Doors, but keep in mind the “90% – 60%
rule”. This
corner is expecting a new addition (grandchild category, of course) tomorrow
or
Friday, so maybe I won’t be around till next week.
Have a good trading day,
Kevin Haggerty
