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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 Generals did step in on Wednesday to buy stocks and again
yesterday, the first day of June as some new money was put to work. And that
might be the case again today as anticipated (5/31/06 commentary). The SPX
closed at 1285.71 +1.2% and is +3.2% off of last week’s 1245.34 low which was a
key price zone and short-term/intermediate oversold condition. The Dow was +0.8%
to 11,260 while the QQQQ +2.4% for 39.74 and the Nasdaq Composite +1.9% to 2220.
Technology was the most oversold after the recent decline. The SMH followed the
+1.2% gain Wednesday with a +1.7 advance yesterday. The minor resistance is
35.11 and major resistance 36-36.50. There is major QQQQ resistance from 40.20 –
40.50. The SPX runs into a resistance zone with symmetry from 1290 -1296 while
is minor resistance at 11,350 for the Dow.
The commodity sector stocks have been the primary daytrading focus and yesterday
was another excellent opportunity because the energy, gold, copper, and steel
stocks all opened down accelerating to volatility band levels which set up Trap
Doors and RSTs. Other Professional Trader Service stocks like CTSH +5.2%, LOSCX
+3.3%, and XRAY +3.1% had excellent moves. Other leaders like brokerages,
transportation, and defense stocks also advanced and they also have been in
integral part of the primary daytrading focus.
NYSE volume was 1.68 billion shares down from 1.94 billion shares on 5/31/06.
But the internals were strong with the volume ratio 83 and breadth +18.33.
However, short-term internals at month-end and the first few days of the new
month are skewed because of the long bias especially in the primary uptrend in
which the SPX and DOW still remains.
Daytraders should remain focused on energy, gold, cooper, steel, brokerages,
transportation, defense and those industrial stocks that are still above the
line like Ingersoll Rand (IR | Quote | Chart | News | PowerRating), GE (GE | Quote | Chart | News | PowerRating), Caterpillar (CAT | Quote | Chart | News | PowerRating), Tractor
Supply (TSCO | Quote | Chart | News | PowerRating) and Fluor (FLR | Quote | Chart | News | PowerRating) to name a few.
Have a good trading day,
Kevin
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