Quantified Stock Market Trading Strategies & Systems
Yesterday was an unusual but rewarding day. The S&P 500 and the Dow both made record high closes, with seven stocks, led by AT&T, Citigroup, and J.P. Morgan, accounting for 108 points of the Dow rally.
The S&P hit its intraday high by 10:30 a.m. ET, and its low by 11:30 a.m.
Yesterday was a choppy day with lots of futures-related asset allocation. The SPDRs crossed their opening price of 132 3/16 eight times during the day–the most I’ve seen in months. They made a new intraday high of 132 7/8 around 1:30 p.m. ET, and then sold straight down to an intraday low of 131 1/4 around 3:30 p.m. before finally closing at 132.
Once again, the tail wagged the dog on Friday, with the big up (almost 10 points) in the S&P futures leading to a gap open on the NYSE. The SPDRs also gapped up over 1%, which proved to be the high of the day. The market immediately sold off and hit the low around 10:30 a.m. ET.
by David Landry
I have found that if you can combine a pattern with high volatility stocks (those on the Trading Where the Action Is List) it often leads to extraordinary gains.
by David Landry
TodayGÇÖs market action was very interesting to me. WednesdayGÇÖs sell-off, combined with a number of Market Bias Indicators pointing lower and the situation in Yugoslavia (which seemed to worsen by the hour) had virtually no effect on things.
Monday we had a big up day followed by an inside day yesterday in the S&P 500. The June S&P futures finished unchanged, while the NDX futures gained three points on the strength of the techs. Whatever is going to happen will probably happen today, since tomorrow will probably be a quiet, trading-range session.
by David Landry
Just because a market is overbought doesnGÇÖt mean it canGÇÖt go higher. However, once a market becomes overbought, it pays to keep at least one eye open for a reversal.
The institutions came for their favorites again yesterday, with many of these stocks rallying three to five points. Techs obviously continued to lead the end-of-quarter rally. We have now retraced almost all of the recent 4.7% down move in the S&P 500. This week wraps up the quarter and also contains the first two days of reinvestment.
by David Landry
On the Pullback List, Boston Scientific mentioned last night, still looks interesting as does Allergan and Nike.
SPECIAL NOTICE: Be sure to tune into CNBC at 1:20 p.m. EST today to see TRADEHARD.COM co-founder KEVIN HAGGERTY discuss day trading.
Early Green Light Right now (approximately 8:30 a.m. EST), the futures are green, we’re well into buy program territory, and the Nasdaq leaders (Microsoft, Dell, Cisco, Intel) are all green. It looks like it could be a gap up day.
A few words on last week: While Friday was an inside day on the S&P 500 and did nothing to change Thursday’s up direction and close, it dampened enthusiasm for stocks. There are a couple of days left until the end of the quarter and the first two or three days of reinvestment. Be ready to jump on board if the institutions come for them.
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