Tuesday, July 22, 2003
Issue Contents:
| 09:27 | Good Morning! |
| 09:59 | Ho Hum... |
| 11:48 | Stock Scan Lists |
| 12:25 | [$INDU, Daily] Dow Jones Industrial Average |
| 13:02 | Charting Software and Datafeed... |
| 13:21 | The Grand Opening... |
| 14:55 | [$COMPQ, Daily] NASDAQ Composite Index |
| 15:12 | Looking Ahead to Wednesday |
| 15:37 | Schedule... |
| 16:04 | Paul's Intraday Picks |
| 16:25 | Real-Time Trading Group Transcript |
Good morning. It's hard to believe, but here we are, live! Later this week, the autorefresh feature will be implemented; until then, please click the reload button in your browser to see new posts.
Not much action so far. Treasury bonds and notes tested yesterday's low and bounced, while stock index futures are sideways for now. We'll begin coverage of the major indices in about 30 minutes.
Don't forget to take a look at ChartScreener.com. We're working with our friend Bob to get all of our lists up there, so that they can be automatically produced at the end of the day.
[$INDU, Daily] Dow Jones Industrial Average
Let's take a look at the $INDU daily chart. It's been in a small congestion pattern for over a month at this point. Most market participants will view this as a consolidation pattern, meaning that they expect that it will resolve in the direction of the prevailing trend - up.
Charting Software and Datafeed...
In case you are wondering what charting software and datafeed that we use, both Mike and Teresa use TradeStation -- TS 2000i with datafeed from eSignal and TradeStation 7.
Teresa uses a custom built desktop computer (Windows 2000 Professional) with a Matrox Millenium G550 video card connecting two 17" NEC LCD monitors set at 1280 x 1024 resolution. Mike has a similar setup.
Feels a bit like the first day of a new restaurant. The customers are all screaming, "Where's the beef!" Meanwhile, we are hauling the cow in through the back door!
[$COMPQ, Daily] NASDAQ Composite Index
Let's take a look at the $COMPQ daily chart. What you see here are three trendlines, "fanned". As an uptrend moves, we follow it up, and eventually, a pullback will breach the trendline. These points are useful, because we know that many traders like to play trendline breaks as trade setups, often to their chagrin, as the trend simply picks up from there and continues on. after traders are fooled into selling their long positions or go short on the fake breakdown. Eventually, the trendline will break, but there are many other ways to enter for a reversal without doing the obvious. Using this chart, we can peg the 1700ish level as a potential "action point".
As discussed yesterday, we don't have a lot of economic data coming out this week. For tomorrow, we have:
- 7 a.m. MBA Refinancing Index. Previous: -1.6%.
- ABC/Money Consumer Confidence. Previous: -21
Earnings continue to be pumped out. Wall Street Journal Online always has a comprehensive list of companies scheduled to release numbers.
It's going to take a day or two to manage the workflow in our new format. With the stock scans going online shortly after 7:30PM Eastern daily, it probably means that Paul's intraday picks and our swing trade stock picks will be uploaded overnight, while we work on the stock indices, futures, and bonds during the day. We're going to upload the transcript from the Real-Time Trading Group after the close, and then everything will be in one place.
These are Paul's intraday picks for Wednesday. He will go through the list in detail in the Real-Time Trading Group tomorrow morning.
- BUY ERICY@12.96, CAT@65.26;
- SELL SHORT INTU@39.74, MCHP@24.49, SFA@28.99.
Real-Time Trading Group Transcript