Schaeffer's Trading Floor Blog

Buying!

by 5/20/2005 2:19 PM
Stocks quoted in this article:

It appears that my comment about lethargic action were enough to motivate the bulls into a buying frenzy! Check out the intraday chart of the SPX...


Chart Courtesy of Thomson/ILX

Okay - so perhaps I am being a bit overly dramatic, but when the action is this slow anything is an improvement. My alert for NYSE net ticks did register a few hits but as you can see in the chart above, this isn't quite a "buying spree"....

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Index Check

by 5/20/2005 1:54 PM
Stocks quoted in this article:

The action remains rather lethargic...

Most groups are content to mull around breakeven as we drift through the day...


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Largest ETF Returns

by 5/20/2005 12:29 PM
Stocks quoted in this article:

I am working on weekly ETF column for the homepage and just ran some numbers to satisfy my own curiosity. Specifically, I wanted to see what groups had been the best performers since the SPX bottom on April 20. Here are the top 20 performing ETFs over that time.

As you can, it is a fairly tight race at the top half of the graph, but it is clear that technology related groups have been where the "hot" money has been flowing to.

To those who closely follow the market on a day-to-day basis, these results probably don't come as too much of a surprise. However, if you are like me, it can useful to occasionally revisit the "obvious"...


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Readers Respond - Internet?

by 5/20/2005 11:57 AM
Stocks quoted in this article:

Before I continue on with the post below, I wanted to touch on Dave's question - "What do you think of HHH? The average scorecard for the sector is 4, but if you average the top 4 holdings, YHOO, EBAY, TWX and AMZN you have barely half that number. The chart shows a tendency to trend for lengthy periods, and there is a gap and resistance at 66.79. Is Google likely to join the group? And would that make the Holder more bearish than it already is?"

My response - As Dave points out, the scorecard readings for the group are not very encouraging. And I also agree with his comment that the HHH has shown a tendency to trend, which is why I am watching this weekly chart...


Created with SuperCharts by Omega Research

The HHH was in strong uptrend for much of 2003 and 2004. This uptrend was cracked this year as the group broke down. The HHH is now testing its 20-week moving average which has rolled over. Typically, uptrends don't reverse on a dime so it would not surprise me to see some sort of rally, perhaps to the grey resistance zone.

As far as Google being added to the HHH - I am not an expert, but I believe that the structure of the HOLDRS makes this doubtful. Unlike "typical ETFs" such as the iShares or the QQQQ, HOLDRS represent a set number of actual shares, which is why you can only purchase them in round lots of 100. More information on their structure can be found on this site. If some has information to the contrary please let me know...


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Stocks quoted in this article:

In response to my post yesterday, Mike says - "Thanks for the link, Nick--great article! But I'd respectfully disagree about it being a case of emotions. It's more psychology as you noted, as applying "logical" thinking to a given situation. ("Logically, it has to pull back before going higher.") What isn't noted, however, is that for every ITRI, there's a KKD, TASR, NFLX, LF or other chart mover that does eventually tank. Perhaps that's where sentiment and fundamentals help with the analysis? (It would be very interesting to see the SOIR and short interest on ITRI during those different periods.) Thanks again! "

My response - This is a great topic for discussion and gives us a few jumping off points that I want to discuss today. Given my propensity to ramble, I am want to try and break the discussion up in separate posts that I hope to chime in with through out the day. If you didn't read yesterday's post, click on the link above and then read the embedded article.

To be continued...

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