Sweet Sixteen

Reminder: Kevin Haggerty's audio commentary is available daily from 8:30 a.m. ET.  

There's not much more you can say other than, "Thank you, semis." All the 16 semi names on yesterday's list finished green as they start to break out of their bases and above their 50-day EMAs, such as (IDTI | Quote | Chart | News | PowerRating) +17.4%, (MU | Quote | Chart | News | PowerRating) +8%, (NSM | Quote | Chart | News | PowerRating) +8.8% and (AMD | Quote | Chart | News | PowerRating) +6.2%. If a semi wasn't up at least 5%, it was a laggard. We also caught the wind at our backs with (VRSN | Quote | Chart | News | PowerRating) +10% and (CMVT | Quote | Chart | News | PowerRating) +9.1%. 

The screen ended green across the board except for the drugs and basics which is similar to Wednesday. The drugs started green again, but when the techs started to run they resumed their current downtrend. The volume ratio was very positive at 64, with 855 million up and 474 million down. The breadth was okay with +385 advancers of decliners. Total volume inched up to 1.4 billion.

The S&P 500 (SPX | Quote | Chart | News | PowerRating) keeps gaining on it, finishing up 1.03%, but the Nasdaq 100 (NDX | Quote | Chart | News | PowerRating) busted a move over the 2547 swingpoint high and then dropped off to close at 2524.29, +4.6% on the day. The biotechs were somewhat green -- at least in the ones we cared about -- with (HGSI | Quote | Chart | News | PowerRating) +7.8%, (PDLI | Quote | Chart | News | PowerRating) +6.9%, and (ABGX | Quote | Chart | News | PowerRating) the laggard at +3.7%. The BBHs finished positive again, but advanced only 0.7%. There will probably be some good setups on pullbacks as the biotechs digest the run.

After the close last night, (HWP | Quote | Chart | News | PowerRating) warned, and (GTW | Quote | Chart | News | PowerRating) reported earnings below estimates. Looking at both their charts, I would say, "So what?" GTW declined from 75 in February to just over 15 recently, before its recent oversold bounce. HWP had declined from about 68 to its recent low below 30. Hopefully, the empty suits on TV will do the usual hype and create some selling, while I know the specialists will do their extracting of a big discount from the last-minute sellers.

Put both stocks on the Watch list, just as you did with (BBY | Quote | Chart | News | PowerRating) at 25 against the down hype. Oh, before I forget it -- BBY just hit 42 a couple of weeks later. So goes the game. I would give anything to start another financial news TV show that is in the real world and give you facts instead of hype and over-emphasis on the wrong things. Their deficiencies are costing investors many dollars. 

The other side of that coin is to not turn it on and do your own work and react to what you see.

Pattern Setups

Most of all the semis from yesterday's Sweet Sixteen closed in the top of their ranges above their 50-day EMAs and stuck their heads out of bases. They are all candidates for continuation entries above yesterday's highs if the Generals pursue again. If they take a few steps back, you are ready for pullback setups on the intraday charts and then the daily charts if they retrace some of their gains.

The two just below their 50-day EMAs are (XLNX | Quote | Chart | News | PowerRating) which has an excellent seven-bar consolidation pattern just under the 50, and (VTSS | Quote | Chart | News | PowerRating). Also, the 3-Day Wake Up Call and Change In Direction lists are very strong this morning.

Other stocks to focus on this morning are (CSCO | Quote | Chart | News | PowerRating), (GLW | Quote | Chart | News | PowerRating), (DISH | Quote | Chart | News | PowerRating), (JNPR | Quote | Chart | News | PowerRating), (EMC | Quote | Chart | News | PowerRating), (SUNW | Quote | Chart | News | PowerRating), (CIEN | Quote | Chart | News | PowerRating), (NT | Quote | Chart | News | PowerRating) and (JDSU | Quote | Chart | News | PowerRating).

Have a good trading day.