Kevin Haggerty is a
full-time professional trader who was head of trading for Fidelity Capital
Markets for seven years. Would you like Kevin to alert you of opportunities in
stocks, the SPYs, QQQQs (and more) for the next day's trading?
Click here for a free one-week trial to Kevin Haggerty's Professional
Trading Service or call 888-484-8220 ext. 1.
The SPX traded in a range between 1558-1552 until a futures-initiated move
following the FOMC minutes, and the SPX closed at 1565.15. NYSE volume continues
to be light at 1.18 billion shares, with the volume ratio 75 and breadth +1301.
The commodity sector stocks bounced yesterday, led by the $HUI +2.6% (gold), XLE
+1.9% (energy), OIH +1.5% (energy) and the XLB +1.9% (basic materials), which
was led by FCX +4.6%, ATI +4.1%, AA +3.7%, NUE +2.6% and MON +2.0%, to name a
few. The commodity sector has been a primary trading focus in the trading
service in this current bull cycle. It has been especially significant for
daytraders because of both trend and intraday volatility. Yesterday was no
exception, as there were strategy setups in focus list stocks like SLB (RST),
CAM (Slim Jim) and PCU (1st Consolidation Breakout), all of which made
significant positive moves. Other focus list stocks yesterday with the defined
strategy setups and positive advances were IBM (RST) and LMT (12-bar Contracted
Volatility opening range pattern). These and other examples can be viewed as a
new free trial member, and you can scroll through the archives to see how these
strategies repeat on a daily basis in the major indices, ETFs and stocks from
the daily focus list posted each day. You can also review the methodology to
select these stocks.
The SPX is +14.2% in 37 days from the 8/16/ 1370.60 low to yesterday's
1565.26 high. It closed at 1565.15 (+0.8%), and is just below the next key price
zone. In addition to being extended on a Standard Deviation basis, there are
also negative momentum divergences in both the SPX and $INDU, and the entire
month of October is a key time period. This all makes a downside reversal the
highest probability. But the PPT, which appears to be very active in this
market, will be working hard to keep any decline to a minimum preceding the
bullish seasonal factor in November-December.
Check out Kevin's strategies and more in the
1st Hour Reversals Module,
Sequence Trading Module,
Trading With The Generals 2004 and the
1-2-3 Trading Module.
Have a good trading day,
Kevin Haggerty
