Prepare Your Watchlist

September 5, 2000
Kevin Haggerty

The game
goes on as the S&P 500 and
Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) gapped big early on Friday, then reversed. The S&P 500
made its intraday low at 1515.55, down from the high at 1530.09 before 11:00
a.m. It then rallied up to the .618 retracement level at 1525 by 1:00 p.m., then
drifted down for the remainder of the session, hitting 1518 before closing at
1520.75.

The Generals did a good job
with the NDX at month-end, jacking it up a total of 3% on August 30 and August
31. We are now looking at the first few days of the month and reinvestment of
funds, but the real world returns after that and we will find out what the
Generals are actually doing.Â

I will be watching the key
institutional stocks that have advanced the most over the past 20 days of this
rally, looking for pullbacks of at least three days and then continuation if the
Generals continue to the upside.

These stocks that were
pumped up at month end, especially some of the momentum stocks, can also provide
you with some good airpocket shorts, so you have to scroll your intraday charts
looking for that break below the 20-, 60- and 260-EMAs. Some of these key
momentum stocks with good liquidity include:Â

I suggest you take the time
to make your list of stocks that you are comfortable trading and watch for
continuation entries after at least three days’ pullback, which might even be
preceded by airpocket short opportunities.

We don’t know what the
Generals are going to do. We’re pretty extended — we’re 22 days into the rally
and we could get a good swift pullback, so you have to be ready both ways.

face=”arial, helvetica”>(September Futures)
Fair Value	size=2>Buy	size=2>Sell
2.80	3.90	1.50

Pattern
Setups

Any kind of shorts today should be
played off your intraday charts strictly on setups during the day.

Have a good trading day.

src=”https://tradingmarkets.com/media/images/comms/haggerty/kh090500-03.gif”>

src=”https://tradingmarkets.com/media/images/comms/haggerty/kh090500-02.gif”>

Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.

Prepare Your Watchlist

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources