Anticipate, Identify, React

From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.

Commentary for 6/20/12

The SPX has advanced +7.6% [low to high] from the 10/4/12 1266.74 key price and time zone low, following the -10.9% decline from the 1422.38 high. The high probability reversal from the key zone contradicted the negative Euro zone news, and a string of weak economic data in the US and abroad.

The SPX chart highlights the O/B condition and negative 5 RSI divergences as the index made the 1422.38 high, and the O/S positive divergences as the SPX made the 1266.74 low in the Pi time zone.

The 1291.98 low on 5/18/12 was on a key long term time symmetry date in that there are 2339 CD`s between the 10/10/12 and 3/6/09 bear market lows, and the fib extension of 1.5 x 2339 = 3508, and 10/10/02 + 3508 = 5/18/12. The SPX was extremely O/S on an intermediate basis as the 5 RSI was 4.99 and the SPX advanced +3.3% from 1291.98 to 1334.93 before it reversed to make a lower low at 1266.74. You have to anticipate and act on key price and time symmetry, not wait for after the fact news and then follow the herd.

When the SPX made the 1266.74 on 10/4/12 and closed at the 377DEMA and 360 degree angle [2.00] it was more confirmation of the Pi symmetry followed by the +7.6% advance in 11 TD`s to yesterdays 1363.46 high, and closed at 1357.98 The 123 Lower Top 2 point resistance is the 1357.38 low on 4/10/12, and 1357.28 is the 225 degree angle [1.25] from the 1266.74 low. If you have downloaded the free calculators you are familiar with the angle symmetry, but if you have the Manual you are now into how to anticipate and calculate high probability reversal zones.

The 6/9/12 Pi date was a Saturday, and the SPX made the low 4 trading days prior on 10/4/12. Those of you familiar with my work know it’s a zone not just a specific date. The anticipated Pi date was based on a previous 8.6 year cycle date of 2009.30 + 3.14 years [Pi 3.146] which is 2012.44 and .44 x 365 = 161 CD`s + 12/31/11 = 6/9/11.

The SPX closed at 1357.98 resistance zone following the 1363.46 intraday high and is S/T-O/B. The initial downside support is the 1335 H&S neckline which has a price objective of 1403 if the SPX can get past the .618RT, and then the 1315-1307 zone which includes the 200DEMA and RS low at 1306.62.

You can download for free 6 of my calculators that I use to measure price and time symmetry at, and my new 200+ page manual “Markets Trade With Geometric Symmetry” is also available for purchase on the site. It doesn’t matter whether you are a trader, investor, portfolio manager, or analyst, because this Manual will enable to pinpoint high probability reversal zones in any market, including Stocks, Bonds, Commodities, and Currencies.

Click here to find full details on Kevin’s courses including Trading with the Generals with over 20 hours of professional market strategies. And for a free trial to Kevin’s daily trading service, click here.