Make This Focus List
What Friday’s Action Tells
You
The market action on option expiration Friday
was
in the first 90 minutes of trading, and then it was choppy from 11:00 a.m.
ET to
4:00 p.m. with nothing defined to do if you are just trading the S&Ps.
The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) closed the week at 1128.55, +0.5% and +0.7% for the week,
while
the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) was also +0.4% on Friday and -0.2% for the week.
NYSE volume rose to 1.42 billion due to
expiration activity, with the volume ratio at 60 and breadth just +179, so
you
can see that it was concentrated index activity, not overall strength. The
(
QQQ |
Quote |
Chart |
News |
PowerRating), 35.43, was +0.8% on the week, remaining in that 35.68 – 35.12
intraday range. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) was +0.9% for the week, closing
at
1910.
The sector activity on Friday was centered
around
the semiconductors, with the
(
SMH |
Quote |
Chart |
News |
PowerRating) +2.2%, the
(
OIH |
Quote |
Chart |
News |
PowerRating) +1.7% with good
focus stock trades, while the XBD (brokers) was -1.2%.
For Active
Traders
I have included the five-minute chart for the
(
SPY |
Quote |
Chart |
News |
PowerRating) which highlights the First-Hour Trap Door strategy, which is also
a
larger RST pattern with the 1 point at 112.96 on Wednesday. Price ran to
113.36,
then was choppy into the 113.15 close.
The second SPY chart is the “520
Trend”
(seminar
material) on the 120-minute chart which gives you the range anticipation for
the
next move in either direction. This must also be looked at in terms of the
daily
chart where you will see the 20-day EMA at 112.05 and the 50- and 89-day
EMAs at
111.40. The SPY is “above the lines” so retracements are in play
from the long
side while you make the sales into the upside resistance outlined in last
week’s
commentary.
The energy focus stocks,
(
SLB |
Quote |
Chart |
News |
PowerRating), +2.4%,
(
CAM |
Quote |
Chart |
News |
PowerRating), +2.6%, and
(
WFT |
Quote |
Chart |
News |
PowerRating), +1.4%, gave you good entries, as did
(
SYMC |
Quote |
Chart |
News |
PowerRating), +1.6%, on the Gap Pullback, while
(
PCAR |
Quote |
Chart |
News |
PowerRating) was +2.8% on a
gap
opening with no real defined entry.
Today’s
Action
I will be out of the country until the next
commentary on 09/30.You have a good framework to work with in the SPX and
know
the resistance levels/retracement levels for the major indices. Another
suggestion would be to make a focus list that includes both the “above
the line”
and “below the line” stocks. This is the primary source of good
intraday setups.
The best daily chart setups result in the highest probability intraday
trades.
Those of you that joined my
mentoring program
will become experts at finding these excellent trade
opportunities.
Have a good trading day,
Kevin Haggerty
P.S. Spend the next year trading with me.Â
Click here for details.
Â