New book by Larry Connors Click here Improve your trading - See how
From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed,OTC and Option trading in addition to all major Exchange Floor Executions. Mr. Haggerty is a co-founder of Tradingmarkets.com and is the founder of www.KevinHaggerty.com.
The "Generals" were true to form last week and the anticipated mark-up resulted in 4 straight up days and +1.7% for the shortened week. In the previous commentary, I said that this week had key time symmetry, and as a result of the mark-up there was also key price symmetry starting this week.
The $SPX price symmetry is the 200DEMA at 1405.85, and the .50RT to 1440.24 from the 1373.07 low (5/27) at 1406.65 The H&S neckline from 1576 is also 1406. There will be a short term change in trend if the 123 Lower Top is confirmed below 1373.07, and the next $SPX price symmetry is in the 1349, and 1327 zones.
This week started with a -1.1% decline by the $SPX on NYSE volume of 1.17 billion shares. The volume ratio (Adv Vol /Adv Vol +Dec Vol) was just 23, and breadth -1168. Yesterday was a -2.0 Volatility Band (1377.63) decline with an intraday low of 1377.79, and then rallied to 1387.53 before closing at 1385.67. Members of the trading service familiar with how to use the VB levels and strategy were able to take advantage of the afternoon rally. There is a Volatility Band section in the Service which explains the use of the VB's, and also individual VB screens for the $SPX, $INDU, NDX 100, and major ETF's. This is all available to free trial users.
You can take a free trial to the trading service by calling 888-484-8200 (Ext 1 Sales) or by going to www.kevinhaggerty.com
Almost every $SPX -2.0 VB move has occurred when there is "derivative meltdown" news, and the Financials lead as they did yesterday, with the $BKX making a new bear market low close. The major brokers, and certain banks were down graded again yesterday, and the debt ratings were lowered for some major investment banks. This news accelerated the $SPX to the downside on the 12:30PM bar from 1387 to the 1377.79 intraday low, and that gave us the opportunity to play the long side from the -2.0 VB zone. It is much more profitable trading the reactions to the news, rather than the news itself. The financials make up about 20% of the $SPX, so there can be no sustained rally with this sector under pressure.
The next commentary is Thursday 6/5/08. Have a good trading day!
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.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
