Very Thin Market In Volatile Stocks

September 1, 2000
Kevin Haggerty

The
Generals gave daytraders a big day,
as the month ended with some excellent multipoint moves in their key
overweighted stocks. Take-over fever continues in the brokers and there were
good moves in the biotechs, semis and banks. We
also had strong runs in most of yesterday‘s
mentioned stocks.

The S&P 500 came out
strong as the Generals were active early on. The index trended up all day until
the last hour when it hit 1525, the level it traded at on Monday, and then fell
off to close at 1517.68, or up +1% on the day.Â

The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating)
which is, of course, very overweighted by the Generals, ended the session
+2.7%.Â

The Dow ended +1.1%, with
JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating) accounting for over 80% of the 112 points.

As you know, the Generals
mark them up, not down, so the volume ratio improved to 54, with 548 million
shares up and 462 down, as total volume expanded to 1.072 billion. Institutional
blocks increased to 22,420.Â

Some air pockets have been
built up and can provide some excellent shorting opportunities after some
institutional money has been put to work during these first few days of the
month. Price will tell us when, as these air-pocket stocks converge at the 20-,
60- and 260-period EMAs on your five-minute charts.Â

Remember, as traders, you
don’t make much money on subjective opinions and that is why you enter trades
with price as your guide. No entry means no loss. You set your trading plan up
with stocks that have a decided tilt in either buying pressure or selling
pressure and you enter when price is going in the desired direction on good
trade-through entries.

The S&P futures are now
up 6 points as I speak, and that might set up some early morning fades before we
see what the Generals decide to do, because stocks today can be moved today by
the Generals and program trades at will. Many of the remaining specialists on
the floor prior to this long weekend are left with instructions to keep
positions light and go with the order flow.Â

Translation: It will be a
very thin market in the volatile stocks.

face=”arial, helvetica”>(September Futures)
Fair Value	size=2>Buy	size=2>Sell
3.95	5.05	2.75

Pattern
Setups

Have a good trading day and have a
wonderful weekend.

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Very Thin Market In Volatile Stocks

BUY THE FEAR, SELL THE GREED

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