Leading tech stocks stronger than XLK, +1.33% include: SYMC, DELL, T, HPQ, IBM and CSCO. Tech stocks weaker than XLK include: AAPL, ADP, QCOM, VZ, ADBE, EBAY, INTC, ORCL, MSFT, AMAT, GOOG, TXN, EMC, YHOO, GLW, AMT and MA.
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Sector Watch
Up Trending:
Sideways: XLE, XLY, XLV, XLK, XLB
Down Trending: XLF, XLP, XLI, XLU
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We'll be back with At the Open on Monday Stocks...
I am interested in knowing how many readers are trading or wanting to trade futures on an intraday basis?
If you are interested drop me an email and let me know at chartsignals@yahoo.com
So what are you thinking about today? Is it the Chrysler bankruptcy? Do you let that event influence your trading on Friday? Are you going to let it influence your trading next week? Isn’t that amazing? The media attributes the sell off on Thursday to that announcement and they went to the trouble to write about it as if it was important and yet it’s alleged influence is over. So how important is it? If it is not that important why write about it in the first place? Well that’s what the media does. They observe whatever happens on a given day and automatically link it up to whatever happens in the market as if that new is the causal factor. Too often news and market action have a coincidence relationship, but the media reports it to you as if it is a causal factor. Why? The media sells advertising. The more viewers, listeners and readers that a media outlet has the more they get to charge for their advertising. If you believe there is a casual relationship with news and the market the more likely you will be to listen to the news, right? Of course you will. Why? Because you will need the news to make better market decisions or at least so you think and so they let you think. Well the reality is if anyone really was going to sell anything it's not Chrysler. Chrysler is a private company. So what can you sell? Certainly not Chrysler stock, because you don’t own it. Does this sound a little silly or what? Traders will actually sell public traded stocks that are unrelated because a private company is declaring bankruptcy. Bankruptcy mind you doesn’t mean they are going out of business, it means they are reorganizing their assets, liabilities and cost structure. If a company assets, liabilities and cost structure make it a non-viable producer, isn’t restructuring to make it a viable manufacturer a good thing? If it becomes a more viable company, isn’t that a good thing for the economy? Well now you understand why we wrote on Thursday; “its total economic significance is likely to be nothing more than a small ripple.” Dave’s Insight: The news is generally not a casual factor and it’s impact for multi-day and multi-week position traders is insignificant. It is almost never has the significance to change the pre-existing trend. The trend is still up. Look for a continuation of the one to two days thrust and one to two days pause (pullback), which has been the pattern of the past 8 weeks, to continue until it doesn’t. Short term traders have a Yellow Alert because Thursday was the high day. In the SPX, Nasdaq and DJIA and they did have lower highs and lower lows but higher closes. Only the RUT had a lower close and it was weak confirmation of Thursday’s shooting star like candle.
Stay mentally flexible because Thursday was a high day and a reversal day. A portion of Thursday and Friday can be viewed as pause or pullback days.
Intermediate term traders the 8 week intermediate term trend is still up. Use higher lows as setups and entry opportunities. As always, trade according to your trading rules.
Index Commentary – Yellow Alert The DJIA formed a hanging man like candle…Thursday is the high day…volume was below average at 237 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a hanging man like candle…closed just above 875 resistance…Thursday is the high day…closed above its 20, 30 and 50 DMA. The Nasdaq formed a doji…stayed above horizontal resistance of 1,682…Thursday was the high day…short term chart price target is 1,765…closed above its 20, 30 and 50 DMA. The RUT formed a spinning top…weak confirmation of Thursday’s shooting star like candle…closed above Wednesday’s S1 level…closed above horizontal resistance of the past two weeks, late January and early February…new chart target 606 during next 8+ weeks…closed above its 20, 30 and 50 DMA At the Open on Monday
Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, ALGT, DLB, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JCOM, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, ORCL, WRC, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BYI, CBST, HLF, AMX, MHS, WAB, FAS, AFAM, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, GXDX, TDG, NIHD, RCI, STRA, ACN, AMED, EZPW, JOYG, MON, MUR, PSYS, SPWRA, PETS Moving Above 30 DMA = 1 NTLS Moving Below 30 DMA = 4 CPLA, GILD, GPRO, NFLX Staying Below 30 DMA DLTR, DECK, JEC, CHL, MCD, BDX, CBST, MYGN, DV, SLGN, TDG, BIIB, MOS, WMT, GILD, BKC, APEI, BLUD, ESI, GXDX Intermediate Term Market Trend: Neutral Short Term Market Trend: Up
1 comment:
kDave, Thanks for your insight on news and how it relates to the market. I'm still learning alot am looking foward to taking the training wheels off and think for myself.
You are a great teacher!
Mark Perschel
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