Trade It, Don’t Debate It
Yesterday
the Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) started
by taking out the Monday 1802 low, reversed, came out of the Flip
Top/Opening Reversal and traded through the 50-day EMA of 1819. That rush
carried up to 1859.40. There were many early multipoint moves in the travel
range stocks from either an Opening Reversal, Flip Top or Trap Door setup.
(
NVDA |
Quote |
Chart |
News |
PowerRating) from
yesterday’s list had two outstanding moves (see below). The first multipoint
move was an Opening Reversal to new intraday highs which was also a continuation
breakout of the closing range Slim Jim from the previous day, a powerful
pattern. If you had done the work, you were ready to play the breakout from the
Slim Jim either way. The breakout above 82.75 ran straight to the intraday high
of 88.29 before fading. NVDA then went sideways from 11:00 a.m. until 2:00 p.m.,
forming a great Slim Jim between 86.60 and 85.60.
The breakout to the
downside from this Slim Jim came at the same time as the NDX broke down out of a
Symmetrical Triangle and below the previous close. From this Slim Jim, NVDA
traded down to 75.25 without anything even remotely resembling a stop. It closed
at 76.54. That’s a 12.1% decline in an hour and a half. If you relate it to
indexes, it is like the Dow breaking down below 10,300 to 9,050 — the same
percentage move — or the SPX breaking below the 1254 low of last Dec. 21 and
trading down to 1102.
The first Slim Jim trade
ran +6.7% and the second -12.1%. Not bad, if you can get part of it. It pays to
scroll those charts for the names on the list and to check those closing ranges.
The volume picked up some yesterday at 1.2 billion, breadth was a push and the
volume ratio an uneventful 43.
The NDX ended -2.8% and
almost the entire index closed in the bottom one-third of the range, so you know
where the continuation shorts are. Take the second entry if you get stopped on
the first one. It isn’t a bad strategy to take just a half position on the first
entry so if you have to scratch the trade you are only half the distance on your
money stop.
Stocks
Today
|
(June
|
||
|
Fair Value
|
Buy
|
Sell
|
|
5.75
|
7.05 |
4.45
|
The Semis, which continue
to provide excellent two-way intraday action include
(
NVLS |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
IRF |
Quote |
Chart |
News |
PowerRating) and
(
MU |
Quote |
Chart |
News |
PowerRating).
In the travel range stocks,
(
JNPR |
Quote |
Chart |
News |
PowerRating) and
(
CIEN |
Quote |
Chart |
News |
PowerRating) (which I now call Mr. and Mrs. Opportunity) continue
to pay the rent, and then some.
Also
(
ADBE |
Quote |
Chart |
News |
PowerRating),
(
BEAS |
Quote |
Chart |
News |
PowerRating),
(
SEBL |
Quote |
Chart |
News |
PowerRating),
(
QCOM |
Quote |
Chart |
News |
PowerRating),
(
MERQ |
Quote |
Chart |
News |
PowerRating),
(
CHKP |
Quote |
Chart |
News |
PowerRating),
(
NEWP |
Quote |
Chart |
News |
PowerRating) and
(
VRTS |
Quote |
Chart |
News |
PowerRating).
If you’re trading it and not debating it,
these stocks have been a daytrader’s dream both ways. They are the game stocks
right now.
Other stocks include:
(
FITB |
Quote |
Chart |
News |
PowerRating),
(
MTG |
Quote |
Chart |
News |
PowerRating),
(
NTRS |
Quote |
Chart |
News |
PowerRating) and
(
WFC |
Quote |
Chart |
News |
PowerRating).
Have a good trading day.
