Traders Profit from Up Bias
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?
Click here for a free one-week trial to Kevin Haggerty’s Professional
Trading Service or call 888-484-8220 ext. 1.
The Easter week up-bias is in swing, as the SPX
was +0.9% to 1437.77, and +1.2% for the first 2 trading days, same as the $INDU,
which closed at 12510. The market action was better yesterday, and across
the board, as the technology and financial stocks were leaders, and that is
necessary if the SPX is to continue higher in this cycle. The percentage
weight of the SPX for the financial SPDR (XLF) is 21% and for technology (XLK)
is 18%. The commodity sector stocks were Q1 leaders, but the XLB (basic
materials) is only 3% of the SPX, and energy (XLE) is only 9%.
NYSE volume was 1.55 billion shares, with the
volume ratio positive at 80, and breadth +1568. All sectors closed green,
led by the XBD +2%, BKX +1.3%, IBB +1.5% and $HUI +1.2%. There was
probably some short covering in front of the long weekend, as the new
Iran-British situation gets softer. The Generals put some new April money
to work at lower levels, and probably some of your IRA funds.
The SPX gapped to the upside on the opening, and
did not have any pullback to allow for any strategy long entries. There
were a couple of short Volatility Band plays at the +1.0 and +1.5 VB. If
you took both of them, the result was at worse a push or else a small gain.
The initial decline in the energy stocks set up 1st hour Trap Doors, and also an
RST long in the OIH following the 146.88 9:45 AM low (.50 retracement).
There was also a 1st hour strategy entry in the GDX, that ran +1.1%. The
next significant downside zone for the SPX is 1350-1300, which is outlined on
the included weekly chart. 1350 is the long-term trendline from the 769
low (2002), and the 1300 zone is the lower channel line from the 1061 Wave 4
low. The 4 previous declines in this primary bull trend hit the 65 dema
zones, and that is now 1345. A stronger key price zone is 1315-1300, which
includes a 10% decline from 1461.57. We should be so lucky to have new
highs above 1461.57 to be able to scale sell into.
Have a good trading
day,
Kevin Haggerty
Check out Kevin’s
strategies and more in the
1st Hour Reversals Module,
Sequence Trading Module,
Trading With The Generals 2004 and the
1-2-3 Trading Module.
