Trader’s Nirvana
After
three straight down days, the
Dow gained +2.1% yesterday, and the S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) +2.3%. The NDX
100
(
$NDX.X |
Quote |
Chart |
News |
PowerRating), after declining 9.5% for three days, has gained back 6% the
past two sessions with a +4.3% day. Now it’s only down 3.5% over the past five
days. Eighty of the NDX 100 stocks advanced. Like a broken record, the semis
(
$SOX.X |
Quote |
Chart |
News |
PowerRating)
once again were the leaders at +6.7%, and we got some good trade-through entries
from yesterday’s list. The volatility in the semis is excellent as the Generals
play.
For the past five days,
the SOX has gone -0.9%, -7.0%, -3.9%, then +4.3% and +6.7% yesterday. The SOX
lost 11.8% over the first three days, then gained back 11% the past two days.
That is trader’s nirvana, and until it changes, the semis must remain at the top
of your trading plan. We don’t care which way they take them because the
volatility is great, and you’re flat at night.
NYSE volume dropped off
slightly to 1.307 billion shares, but the volume ratio was excellent at 75, and
breadth very broad at +1335. All of the major sectors ended green for the first
time in a while. The SPX closed at 1084 as it runs toward the upper boundary of
its Slim Jim between 1050 and 1111. The 50-day EMA is now 1093. I would look at
fade any early carryover to the upside, but you must get a Change in Direction
pattern on the intraday chart before you play. When stocks like the semis and
biotechs have one of their air pocket days, it happens fast, and you have to
keep scrolling the intraday charts.
Stocks
Today
Daily chart setups on the
buy side:
(
QCOM |
Quote |
Chart |
News |
PowerRating),
(
BBY |
Quote |
Chart |
News |
PowerRating),
(
KSS |
Quote |
Chart |
News |
PowerRating),
(
LOW |
Quote |
Chart |
News |
PowerRating),
(
ADP |
Quote |
Chart |
News |
PowerRating),
(
LTR |
Quote |
Chart |
News |
PowerRating),
(
IBM |
Quote |
Chart |
News |
PowerRating),
(
FDC |
Quote |
Chart |
News |
PowerRating),
(
STT |
Quote |
Chart |
News |
PowerRating) on a re-cross of its 50-day EMA above 45.92.
Also, keep
(
FNM |
Quote |
Chart |
News |
PowerRating) and
(
FRE |
Quote |
Chart |
News |
PowerRating) on the list. They gave us great trade-through days yesterday, just in
case the Generals come to play a third day in a row.
In the semis,
(
GNSS |
Quote |
Chart |
News |
PowerRating),
which was a moonshot yesterday,
(
MCHP |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
NVDA |
Quote |
Chart |
News |
PowerRating),
(
TXN |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
MXIM |
Quote |
Chart |
News |
PowerRating) and
(
LLTC |
Quote |
Chart |
News |
PowerRating).
In the biotechs, look for
the
(
BBH |
Quote |
Chart |
News |
PowerRating)s on a re-cross of the 200-day EMA of 128.78, or for a lower price,
you can play the biotech I-shares, which are
(
IBB |
Quote |
Chart |
News |
PowerRating). The volume started to
pick up a little bit, and you’d go in those above yesterday’s high. Individual
biotechs would be
(
HGSI |
Quote |
Chart |
News |
PowerRating),
(
IDPH |
Quote |
Chart |
News |
PowerRating),
(
DNA |
Quote |
Chart |
News |
PowerRating) and
(
GENZ |
Quote |
Chart |
News |
PowerRating).
On the short side, focus
on the semis if they start to turn because there is some air underneath after
the past two days’ 11% move.Â
Have a good trading day
and 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
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