Strategies and Focus List Stocks

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 SPX traded in a range between 1558-1552 until a futures-initiated move following the FOMC minutes, and the SPX closed at 1565.15. NYSE volume continues to be light at 1.18 billion shares, with the volume ratio 75 and breadth +1301. The commodity sector stocks bounced yesterday, led by the $HUI +2.6% (gold), XLE +1.9% (energy), OIH +1.5% (energy) and the XLB +1.9% (basic materials), which was led by FCX +4.6%, ATI +4.1%, AA +3.7%, NUE +2.6% and MON +2.0%, to name a few. The commodity sector has been a primary trading focus in the trading service in this current bull cycle. It has been especially significant for daytraders because of both trend and intraday volatility. Yesterday was no exception, as there were strategy setups in focus list stocks like SLB (RST), CAM (Slim Jim) and PCU (1st Consolidation Breakout), all of which made significant positive moves. Other focus list stocks yesterday with the defined strategy setups and positive advances were IBM (RST) and LMT (12-bar Contracted Volatility opening range pattern). These and other examples can be viewed as a new free trial member, and you can scroll through the archives to see how these strategies repeat on a daily basis in the major indices, ETFs and stocks from the daily focus list posted each day. You can also review the methodology to select these stocks.

The SPX is +14.2% in 37 days from the 8/16/ 1370.60 low to yesterday's 1565.26 high. It closed at 1565.15 (+0.8%), and is just below the next key price zone. In addition to being extended on a Standard Deviation basis, there are also negative momentum divergences in both the SPX and $INDU, and the entire month of October is a key time period. This all makes a downside reversal the highest probability. But the PPT, which appears to be very active in this market, will be working hard to keep any decline to a minimum preceding the bullish seasonal factor in November-December.

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.

Have a good trading day,
Kevin Haggerty