If You Were Scrolling, You Probably Caught These Trades
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?
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The rally that started into
month end on 1/26/06 has been given back, with a new SPX 6-day low
yesterday of 1267.72 and closed at 1270.84, -0.9%. The short-term trend remains
down from the 1294.90, 01/11/06 high. The 6-day high is 1287.94, so the
challenge to the 1294.90 magnet has been weak in spite of all the daily media
and pundit spin. Consumer-related indexes/ETFs and banks have been weaker than
the market, while the commodities and related stocks remain the leaders, What
does that tell you? The Dow is also -0.9% to 10,852, QQQQ, -1.7%, and Nasdaq,
-1.3%. The semis, cyclicals and banks led the downside, with the SMH, -1.7%. CYC,
-1.2% and BKX, -0.9%. The XAU was -1.2% but remains +3.6% on the week, closing
at 152.11. FYI, the XAU is +55.0% from the 10/20/06 low at 101.06 to Tuesday’s
156.47 high, so no surprise on any pullback, which is long overdue. The
“Players” will probably get aggressive again in the 145 -143 area.
NYSE volume was heavy at 1.89 billion shares, with the volume ratio 23 and
breadth -1354, so there was no question about the supply/demand equation
yesterday. Traders caught the
Flip Top short in the morning in the SPX, and there were quite a few RSTs
and 1,2,3 higher bottoms at volatility band levels in the energy stocks
yesterday afternoon. If you were scrolling, you probably caught some of them.
The SPX initial downside focus is the 50-day EMA zone 1264 – 1265, and
below that is the short-term downward channel line around 1255. 1276 is initial
minor resistance
Have a good trading day,
Kevin Haggerty