Daytraders should focus on commodity and semiconductor sectors
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
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The SPX was flat on Friday at 1311.28
and 1311.45 close on Thursday, and has yet to close above the initial Wave 5
price zone. The Dow was +4 poinots to 11,347, while the QQQQ’s
were -1.2% due in part to the semiconductors with the SMH -2.2% following three
straight up days at +5.7%. It was options expirations Friday. Intel
failed to get it done after the hype, closing at $19.06, down from $20 intraday
high.
The major indexes made bull cycle highs which were unconfirmed
by most of the breadth indicators. Fewer stocks are leading the advance,
and this is a common late-stage market characteristic. The commodity
sectors were the leaders again last week with the OIH +7.2% and XAU +7%.Â
The brokers remain extended and were +3.9%.Â
Day traders continue to get the best opportunities in the
commodity and semiconductor sectors where the intraday volatility (travel range)
is excellent. The herd continues to stampede the energy stocks, with the
OIH now about 25% above its 200 day EMA and +25 % in price in just 30 days.Â
This angle of advance cannot be sustained, so it is day trading only at these
levels.
April is a plus month for the generals so far, and the bias
for them to mark prices, or at a minimum, hold, during this last trading week of
April might be hard to do with the current hype on the 15-20% increase in price
at gas at the pump and the escalating Iran noise. This week includes a key
time zone, so prices are marked up. The bias is on the short side into the
next time zone, which is mid-May.
Have a good trading day.
Kevin Haggerty
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