Schaeffer's Trading Floor Blog

Into the Close

by 5/2/2005 4:10 PM
Stocks quoted in this article:

The bulls made a later afternoon push...


Chart Courtesy of Thomson/ILX

...to bring the SPX back to its morning highs.

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Stocks quoted in this article:

David says - "Did you mention the TICK was above 1000 for the day last Friday. On 3/31 the reading was above 1000, these two surges have been made AGAINST declining averages. Did you mention that buying power was being used up? "

My response - Thanks for sharing! I have not cited those particular points but I do think that we have seen buying pressure exhausted just in the name of maintaining current levels. In other words, buyers have not been able to gain traction and are just barely holding their ground.

If you look at the daily SPX chart I posted below, you can see the stair-step pattern that is developing. Selling pushes the market lower...Buyers step in and halt the decline...Another round selling pushes the market to a new low...Buyers step in and halt the decline...Another...


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Readers Respond - Floored

by 5/2/2005 3:12 PM
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A reader says - "On a number of occasions you have referred to 'the trading floor'. What are you referring to?"

My response - I guess that might be confusing to those who don't work here and understand our setup. As I am sure most of you are aware, we offer a number of Alert Services that are run by our traders. (You can see a list of these services by clicking here.)

We refer to the area where the traders sit as "the trading floor" as it is an open area where trade ideas and market events are discussed. While not the "exchange" floor that you might see featured on CNBC, it does have an "open outcry" feel as we have a number of people scouring the market and throwing out information as they see it...

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Chart Chatter - SPX Daily

by 5/2/2005 2:58 PM
Stocks quoted in this article:

A surge in NYSE net ticks came as the SPX pushed back above the breakeven mark. So far this buying hasn't gained traction but it did bring my attention back to this daily chart of the SPX that we have been tracking...


Created with SuperCharts by Omega Research

Friday's rally and today's small bounce has pushed the SPX back into the resistance zone as well as challenged the upper rail of the downtrending channel. A push above last week's highs would be win for the bulls (who have been severely lacking on this front) but I am not sure they will be able to muster that sort of momentum ahead of the Fed...


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Stocks quoted in this article:

Continuing the discussion on utilities...I pulled the weekly charts for the top four stocks listed in my last post.

Created with SuperCharts by Omega Research

Here you can see the intermediate-term trend along with the 20-week moving average. I had intended to focus on one or two stocks but as I went through the charts I was struck as how many showed action that I would consider interesting. In other words, the widespread strength which suggests that many of the stocks in the group are seeing accumulation.

As I dug into the sentiment, I was struck by how little enthusiasm is being expressed by the Street. For example, the stocks in that list garner a combined 272 ratings from the analysts tracked by Zacks. Of those ratings, only 68 (25 percent) fall into the buy camp.

With strong performance from a number of stocks and the Street still sitting on the sidelines, this group may be worth a look...

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