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The Generals
continue to chase the defensive issues like consumer staples and biotechs.
The XLP (consumer staples SPDR) was +2.6% last
week vs. the SPX, -0.5%. Prior to Friday's SPX +0.7% advance, to 1281.58
the index had declined five of the previous six days into the 03/06 - 03/08 key
time period and a 1268.42 low. Friday's advance came off a 4 MA VR of 36,
breadth -791. The semis and various technology stocks are short-term oversold
with the 5 RSI <25, so an oversold advance would be no surprise. The same was
true for some gold, copper and energy stocks on Thursday, but they had up-days
on Friday. NEM and FCX are both at their 200 DEMAs and are five weeks down from
their rally highs, so they could get active this week as the "players" look for
something to front run should the Generals reload in their portfolios with any
of these commodity stocks.
NYSE volume on Friday was 1.5 billion shares, but
the VR was 77 and breadth +1380, as both the SPX and Dow are now all greater
than their 20, 50 and 200 DEMAs. Some of you trading service members know it as
ATL #1 stocks. The focus zone on Friday was 1271 - 1270, and the SPX hit 1271.11
with some Fibonacci extension symmetry, then traded to 1284.37 before closing at
1281.58. There was a similar move for the QQQQ from the 200 DEMA zone, with
entry above 40.34. There were also RST/Trap Doors for both the IWM and MDY
with the IWM trading to 72.24 after entry above 71.18 and the MDY to 140.32 from
138.62. Entries were on the 9:45 a.m. bar. There were also volatility band Trap
Doors in the OIH and various energy stocks in addition to NEM. If you have the
First Hour Module strategies, it was an excellent trading day, but
even better if you understand the RST strategy which is explained in the
Sequence Trading Module and/or
Trading With the Generals seminar material.
This week is the first quarter option expiration,
so trading can get very erratic as there is usually more random price movement
than usual. There are 15 trading days left until the end of Q1, so there will be
lots of trading opportunities going forward as the Generals and hedge funds will
be very active.
Have a good trading day,
Kevin Haggerty
