Watch Those Qs
The S&Ps gave
us a last-hour push of about
12 points as we headed to the FOMC meeting today. The key overweighted techs
started to roll yesterday with Sun Micro
(
SUNW |
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PowerRating) + 3 7/8, Oracle
(
ORCL |
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+ 3 3/16, Nortel
(
NT |
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(
IBM |
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(
NDX |
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PowerRating) finished the session +2.3% and that is no surprise. That is what we
expected based on the overweighting in the tech sector and with the six-month
report card at hand this week preceding the holiday weekend. The Generals
recaptured 1% on the S&P 500, so let’s hope Greenspan & Company lets
them finish the job because it will make it a good trading week.
The QQQs
(
QQQ |
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PowerRating) were very friendly
to trade yesterday as they gapped open 1 1/16 points to 93 1/16, then sold down
to the 50-day EMA at 92, then rallied to 94 3/16, so the 50-day EMA proved to be
a good pivot point. They finished the day on an inside day and also closed in
the top of the range. This sets you up for today’s upside move if no surprises,
and the 50-day EMA remains as your downside pivot. If you don’t trade them,
watch them closely for your trades in some of the other tech stocks. It is
always better if things are moving in the same direction. If the dollar price of
the Qs is too high for you, then go to the XLKs which are the technology SPDRs,
which also closed with an inside day and above its 50-day EMA. With the
slowing-down chatter getting stronger, the financials perked yesterday, so we
look to be there if there is any continuation today.
| Program |
||
|
Fair
|
Buy
|
Sell
|
| 20.20 |
21.40 |
19.05 |
Pattern Setups Â
I’m giving you more pattern setups
than normal today: Oracle
(
ORCL |
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PowerRating), Sun Micro
(
SUNW |
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PowerRating), Cisco
(
CSCO |
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PowerRating)
(on a recrossing of the 50-day EMA) and also Intel
(
INTC |
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PowerRating). Intel closed too
far down in the range, but if you get a buy pattern early today on your
five-minute charts, take it if the sector is green. Also Siebel
(
SEBL |
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PowerRating), Sycamore Networks
(
SCMR |
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PowerRating), Brocade
(
BRCD |
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PowerRating), Nvidia
(
NVDA |
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PowerRating),
SDL
(
SDLI |
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PowerRating), Micron
Technology
(
MU |
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PowerRating), Pfizer
(
PFE |
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PowerRating), Citigroup
(
C |
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PowerRating), American International Group
(
AIG |
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PowerRating) (above Friday’s high of 117 15/16), and also the XLFs on a recrossing
of the 50-day EMA for a position trade in the financials. Some of the new HOLDRs
that looked good yesterday are the BBHs which are the biotech HOLDRS, the PPHs,
the pharmaceuticals, if you want to play the entire drug sector, and also the
IAHs, which are the Internet architecture HOLDRs.
Have a good trading day.