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?
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The SPX remained essentially flat on the week, despite all of
the Dow 12,000 hype, economic and earnings reports. SPX closed at 1366.89
(+.07), and that is what it is on the week. This is also indicated by the
4 MA's of the volume ratio at 49 and breadth +415 . The advance continues
on fewer stocks, pushing the index, which is also evident when you look at a
moving average of NYSE new highs vs the SPX price advance. The semis have
headed south the past 3 days, with the SMH -5.3%. Yesterday, AMD
(earnings) imploded and closed at -13.3% (AMD | news | PowerRating | PR Charts ). Traders who are
familiar with my strategies had an excellent trading day yesterday in the energy
stocks. There were 1-2-3 higher bottoms in the OIH and XLE with excellent
symmetry. This of course was the same for many of the component stocks, in
addition to a few RST setups, like (VLO | news | PowerRating | PR Charts ).
NYSE volume was 1.63 billion shares, with the volume ratio 54
and breadth +415. $INDU closed at 12,012 (+0.2), which made the media
happy, as they continue to hype it and spin any negative news. The SPX
daily range yesterday was only 6 points, which took traders out of the game, as
most of the action was sideways with no real travel range. The commodity
sector led, as the $HUI (gold stocks) was +3.7%, OIH +3.5% and XLE +2.1%.
The energy rally yesterday coincided with the 1-2-3 double bottom pattern
reversal for crude oil (CL06) at 11:15 AM, which closed +1.5%.
The pre-market futures are small to the downside, and OPEC cut
production (expected), so the energy stocks should have some volatility again
today. There are only a few weeks until the mid-term elections; any
technical declines from the obvious overbought condition will be small.
Have a good trading day,
Kevin Haggerty
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.
