Traders Win Big With Key Strategy
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 trading was erratic yesterday, as the SPX was +11 points to 1456.76 on
the 9:35 AM bar, versus the previous 1445.90 close, and then went south to a
1435.65 intraday low at noon. This decline set up an RST long entry above
1439.50, which ran +21 points to a 1460.16 intraday high before fading in the
market on close session to a 1454.98 close (+0.6%). The $INDU was +0.5% to 13232
and QQQQ +0.3% to 49.89. Traders who have learned the RST strategy obviously had
an excellent day, because there were also many RST setups in the energy sector,
starting with OIH, and then focus list stocks, like XOM, RIG, FII, ECA, WFT, and
EOG. The XLE reversed from a 1-2-3 double bottom, so it was a real bonus day for
daytraders all around. Other focus list RST trades that had excellent moves were
POT, which ran +3.8% from the strategy entry level, and CLF, which made a +3.0%
run.
NYSE volume was 1.49 billion shares, with the volume ratio 64 and breadth
+690. It remains a short term oversold condition, with the 4 ma’s of the volume
ratio and breadth at 43 and -1041. However, the SPX has broken the 200-233 day
ema zone (1474-1466) the past 2 days, and this is now resistance. This market
action is a significant negative for a strong markup by the Generals into year
end, as “they” are running out of time. The market closes early on Christmas
Eve, and is closed on December 25, and then there is also an early close on
December 31, so “they” don’t have time on their side.
This is an option expiration week, so expect anything the next 3 days, and be
prepared to trade the overreactions. The market remains short-term oversold, and
the bias is still up into the year end, but not with the same enthusiasm as
before the SPX broke below that 1474-1466 zone.
Be prepared for new market lows in 2008 as the bear cycle continues to
unfold.
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.
Have a good trading day,
Kevin Haggerty
