Two Possible Outcomes
The torture continues. While the S&Ps
broke the “coveted” 798 level and traded a few points below that, the
bulls or the plunge protection team came in to salvage a close above the magical
800 level. While I did not trade after the first hour on Friday (out of office),
it is obvious that we now have two outcomes going into this week. The first is
that Friday’s action is seen as a successful “holding” of critical
technical levels and the indices trade higher from here, or we remain stuck in
this trading range. I do not know the answer. But there were several stocks on
an intraday basis putting in nice bottoming formations.Â
One group stood right out as I was going through charts on Sunday evening,
The Retailers. On an intraday basis (15- and 30-minute charts) many are
completing Wave 5 downtrends. While at this point I am not ready to commit
capital, I will be watching these as potential long candidates if the indices
turn higher. The stocks below are the ones that showed up in the nightly scan:
Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating)
Costco
(
COST |
Quote |
Chart |
News |
PowerRating)
Kohl’s
(
KSS |
Quote |
Chart |
News |
PowerRating)
Lowe’s
(
LOW |
Quote |
Chart |
News |
PowerRating)
Sears
(
S |
Quote |
Chart |
News |
PowerRating)
Target
(
TGT |
Quote |
Chart |
News |
PowerRating)
Or, you can simply look at the Retail HOLDRs (RTH)
as a less complicated way to play. Remember, these patterns are not HVT,
they are meant as a trade that may last several hours or a few days.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 837 | *877* |
| *830* | 856 |
| 823 | 847 |
| *815-18* | *840* |
| 806 | *828-32* |
| 804 | 816 |
| 792 | 804 |
| 781 | 795 |
* indicates a level which is more significant.
Notable Quotes:
“My opinion is that the bear market is over. It ended on
Monday (9/30). We’re bumping around at the bottom, but the direction is up from
here.”
This quote was from an article in this weekend’s Financial Times.
I will have a more in depth column tomorrow. As always, feel free to send me your comments and
questions. See you in TradersWire.