These 2 sectors are strong resources for daytraders
Kevin Haggerty is
the former head of trading for Fidelity Capital Markets. His column is
intended for more advanced traders. Kevin has trained thousands of traders
over the past decade. If you would like to be trained by him,
ext. 1.
The SPX
made a new intraday high at 1272.89 and then dropped like a knife
starting on the 3:05 PM bar to close at 1263.70, +0.1%.The Dow finished at
10,857, +0.2%, and QQQQ, 41.93, +0.3%. NYSE volume was 1.6 billion shares,
with the volume ratio positive at 62 and breadth +348. There was nothing really
significant about the primary sectors except of course the big move in the XAU,
+2.8%,
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PowerRating), +4.1% while the Cash closed at 510.58. The TLT was +1.0%. The
SMH, RTH and CYC were +0.4% to 0.6% with the OIH +0.3% The XBD gave back
Monday’s gains at -0.6%. The SPY made a new rally intraday high to 127.74 in
conjunction with the 5 RSI negative divergence, so that is a heads up coming
into this time zone, 12/7 -12/15. (see chart).
Daytraders had an early range breakout
opportunity after the initial gap above the triple top range from Thursday –
Monday. There was a pullback into that range to 1264.54, then a trade-through
entry which traded up to 1272.89. This corner did not catch the knife down
to the 1263.70 close. (see chart)
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With all of the media noise on the long bond
rally, the bottom line is that the 91.28 resistance still holds and the TLT
remains below its 200-day EMA of 90.57. At the same time, most commodities
remain in strong uptrends. Major equity indices will not continue up with
a bonds down-commodities up scenario for very long.Â
Energy and healthcare stocks continue to be strong resources for daytraders and
if this current time period is red there will be some short side opportunities
in some of the basic material stocks that will not sustain the current rally’s
angle of advance.
Have a good trading day,
Kevin Haggerty