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 Generals marked up stocks into month end yesterday as the SPX advanced +2.2 to a new high close of 873.64, and new intraday high at 882.06 NYSE volume was on the lighter side at 1.48 bill shs, with the volume ratio 89, and breadth +2062. It was a broad advance as all sectors finished green, and only the TLT (-0.9) and USD (-0.7) finished red, while crude oil (WTIC) was +2.2.
Today is month end, and the SPX futures are indicating a strong opening, so the Generals will try to take the index higher. The anticipated SPX 882 .236RT to 1576 from 667 gave day traders a bonus trade yesterday. The intraday high was 882.06 after the FOMC spike (no valid reason) on the 2:25 PM bar, and the reversal bar short entry below 880.35 declined to 868.21 on the 3:45 PM bar, before a MOC (market-on-close) bounce to the 873.64 close.
Bernanke said nothing yesterday that he hasn't said before over the last 4 weeks as he continues to jaw bone the economy up with optimistic remarks about an early end to the "recession". Problem is "Mr. Ben", that doesn't solve the derivative meltdown, and so far the banks are still not lending so Geithner's toxic asset problem can't succeed until that happens.
The key price zone in play now is the 882 .236RT to 1576, and a few angles up to 889 measured from the 667 3/6/07 low. This is the first significant Fib RT zone, because it is to a previous bull market top, and just a previous swing point high like 944 (1/6/09). The Wave 1 high following the 769 10/10/02 bear market low was 954, which was also the .236RT to the 1553 3/24/00 bull market top. Position traders that bought this market in March at the 665 .618RT to the 1982 low and then the reversal of 741 and 769 should be taking some money off the table, and tightening stops on the balance.
There is also some minor time symmetry next week. There will be a Fib correction to 667, and after that higher trough investors will have to buy the Wave 3 leg above the current rally high which is not in yet. This will not be a "V" recovery in the market or the economy, despite the political spin and "midnight madness" hype by CNBC.
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.
