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. For a free trial to Kevin’s Daily Trading Report, please click here.
The SPX was bumping along the 838 .618RT level (944-667) yesterday until the 3:00 PM bar when it made a futures accelerated news move up to 852.64 and closed at 852.06 (+1.3). NYSE volume declined to 1.48 bill shs, with the VR 73 and breadth +1330.
The financials led on the day with the BKX +5.0, and XBD +3.0, but it is hard to believe any of the news coming from these firms, or the Government spins on their condition, especially the stress test which is a farce. That goes hand in hand with the FASB temporarily suspending the "mark to market" rules, which will enable the banks to value assets using their own internal standards, and that will let them hide their losses, show earnings, but the toxic assets won't go away. It looks like a replay of Bernie Maddoff's accountant. The toxic asset plan won't work unless the banks start lending, and that isn't really happening yet in any significant way.
The SPX has advanced +29.6% in 25 days to the 864.31 high on Monday, and the 863 .707RT to 944 from 667. This follows the -29.3% decline from 944 to 667, and based on the previous legs there seems to be some symmetry as the -26.5% decline to 741 preceded the +27.4% advance to 944, and the leg before that was -19.1%, followed by a +19.3% run to 1008. There was also time symmetry on 4/13, in addition to the negative momentum divergences which you can see on the second SPX chart.
The SPX has hit the upper line of the downtrend channel in a rising wedge pattern as money managers and investors won't let the market come in because most all of them missed the key price and time zone at the 3/6/09 667 low, and are pushing the panic button as if there will never be another down day, and we do know that is not the case. After a Fib correction to a higher low, and then a continuation move to a higher high, it will force most investors into the market for fear of missing a Wave 3 in this rally.
"The problem with Socialism is that you eventually run out of other peoples money" - Margaret Thatcher
Have a good trading day!
Click here to find full details on Kevin's courses including Trading with the Generals with over 20 hours of professional market strategies. And for a free trial to Kevin’s daily trading service, click here.
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.
