No Market Symmetry in Current Range
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 broke out of that 8 day range between 858-804 on Wednesday with a +3.4% gain to close at 874.09, but then turned upside down yesterday as it lost -3.3% to 845.14, going trend down all day to the 844.15 intraday low. That eliminated any chance to take out the 12/31/08 close of 903.25 and make January a positive month.
NYSE volume was 1.44 bill shs, with the Volume Ratio only 9, and breadth at -2162. All sectors were down across the board except gold as the GLD was +2.4, GDX was +5.1, and the HUI was +4.6. The $USD index continues to hold up as it went out at 85.34 or +0.8%. The Generals have been net buyers of stocks on balance so far in 2009 while the hedge funds continue to be net sellers. The most on balance buying by the Generals has been in the Technology, Industrial, and Utility sectors so far in 2009, while they remain net sellers of financial stocks. The focus list in the trading service always reflects these on balance money flows when deciding on which stocks to trade.
The current proposed “pork spending bill” that the “robber barons” in Washington are trying to call stimulus is a disaster waiting to happen, if passed as it is now, and it will be a heavy anchor on the market. The proposed bill makes Bernie Madoff look like just a small time pick pocket relative to the “ponzi scheme” that the new Socialists in Washington are trying to pull off.
The market was ST-O/B after Wednesday with the 4MA’s of the VR and breadth at 70 and +1157, but it isn’t ST-O/S after yesterday’s -3.3% SPX decline, and it is not at any key price at time zone. There is some Fib ratio time symmetry next week for the 10/10/08 840 to 11/21/08 741 lows, which would be a factor on continued weakness, but the primary longer term time symmetry falls later in February. I have no strong market opinion in the current trading range for new positions, and I won’t until I see some price, time, and momentum symmetry.
Have a good trading day!
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