Trap Door Win
Yesterday
you were ready for the Trap Doors
and that is exactly what you got. The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) gapped down 2% on the
open and then a three-bar Trap Door move down to 2649 which proved to be the
intraday low, on the 9:45 a.m. bar. That proved to be the setup bar as it closed
in the top of the range, and reversed the prior bar’s high as it was a
wide-range outside bar. Your entry was above the high of that bar which was
2674. The NDX rallied to an intraday high of 2762 on the 10:30 a.m. bar. Save
that chart for your records.
The S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating)
had a similar Trap Door setup but after topping out on the 10:30 a.m. bar, it
sold off to a new intraday low of 1339 on the 3:00 p.m. bar before closing at
1343.55, -0.6%. The NDX closed at 2720, -0.9% for the day but did not make a new
low, as the index sold off from the intraday high.
The chosen ones had 16 out
of 25 closing green, which was an interesting divergence. There were also some
good Trap Door plays in many of those stocks and many had second uptrends in the
afternoon, to close green. The financials also closed mostly green as the
Generals still have their money on the table — they look like they want to go
higher.
They took
(
INTC |
Quote |
Chart |
News |
PowerRating) down
after the close on the company news, but it was already in the stock as INTC
rallied back to 32.5 by 6:00 p.m. which was above its 32.3125 4:00 p.m. So much
for extended trading hours! The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s sold off also, but they were back to
go by 6:00 p.m. when I left.Â
As I look at the screen at
7:00 a.m. ET, the futures are up +16 points and the NDX futures are up +95 in
anticipation of some Florida decisions today, so from a gap down day we go to
what looks to be a gap up day, barring any negative news before 9:30 a.m.
Needless to say, if it is favorable Bush news it will be a high-octane day with
lots of futures action accelerating the intraday moves.
face=”arial, helvetica”>(March Futures) | ||
Fair | size=2>Buy | size=2>Sell |
22.95 | Â 24.25Â | Â 21.45Â |
Pattern
Setups
Stocks today: The chosen
ones because they acted so well yesterday at the positive divergence — you want
to stay in those today. Ones that set up on the daily chart are:
(
CMVT |
Quote |
Chart |
News |
PowerRating),
(
CIEN |
Quote |
Chart |
News |
PowerRating),
(
BRCD |
Quote |
Chart |
News |
PowerRating),
(
GLW |
Quote |
Chart |
News |
PowerRating),
(
JDSU |
Quote |
Chart |
News |
PowerRating),
(
SEBL |
Quote |
Chart |
News |
PowerRating),
(
SANM |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating),
(
PALM |
Quote |
Chart |
News |
PowerRating),
(
PDLI |
Quote |
Chart |
News |
PowerRating),
(
FRX |
Quote |
Chart |
News |
PowerRating),
(
STT |
Quote |
Chart |
News |
PowerRating) and also
(
MYGN |
Quote |
Chart |
News |
PowerRating).
It’s now 8:00 a.m. ET and
the S&P futures are up +15 and the NDX futures are up +95.
Have a good trading day.
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