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 6/04/12
The SPX bounced +3.3% from the key price and time zone to a 133.03 high last Tuesday, and the geometric symmetry for that zone was detailed in the previous two commentaries [Trading with the Odds On your Side, Key Price and Time Zone]. The SPX was up 5 of 6 days for the reversal and also reversed the 200DEMA.
However, the reversal ended quickly on Friday after the negative global headline news and the jobs report, both of which accelerated the NYSE discount opening. The European markets went south led by the DAX -2.4% overnight while the Asian markets and commodities also went south. The PMI reports out of China and the UK were disappointing, and analysts are tripping over each other to lower economic estimates for the developed and emerging world.
The market would have opened at a significant discount on the global news alone as the SPX futures were off by more than 15 points before the jobs report, but the extent of the decline accelerated after the weak jobs report and the market had a mini meltdown day as the SPX finished the session at -2.5% to 1278.04, and was -3.0% for the week.
There is some price symmetry at this level in that the SPX 377DEMA is 1277.51, with the 2.0 angle [360 degree] from the 1422.38 high at 1275.50. The 1278.04 close obviously took out the 1289.59 .382RT to 1074.75 from 1422.38, but unless the Central Banks make some overt move the SPX could decline to the .50RT [1074.77] at 1248.57, and there is also an angle at 1248.88, in addition to the 610DEMA at 1245.70. The .236RT to the 667 2009 bear market low at 1244.11, so the 1249-1244 price zone is a stronger cluster of price symmetry.
The SPX has declined -10.2% from the 4/2/12 1422.38 high, and -9.9% from the 5/1/12 123 Lower Top high at 1415.22 when the USD started to go vertical. There is some Pi symmetry on 6/9-6/10, and there is also time symmetry on 6/16/12 which is the 1.272 fib extension of the 3/6/09-10/4/11 SPX lows, and also for those of you that have downloaded the calculators there is other geometric date symmetry on 6/18/12 measured with 3 SPX different legs [1/6/09-3/6/09, 10/11/07-3/6/09, 10/27/11-11/25/11].
It was obviously a “Fear Day” yesterday with most everything trading to their 2.0 VB zones and beyond. The GLD and TLT to the upside, as you would expect, with everything else to the down side. There were minimal contra moves in the SPX, but enough to do no now worse than B/E, or make small gains if you also took the 11:15AM trade. There were better contra moves in the energy sector, as you see on the SLB and OIH 5 min charts which are included.
Regardless of whether you are an analyst, money manager, or trader you will see that you can identify high probability reversal opportunities in any market including Equities, Bonds, Commodities, and Currencies by using the tools for Geometric Market Timing.
You can go to www.geometricmarkets.com and download for free 6 of my calculators that I use to measure price and time symmetry, and the key facets of Pi symmetry are outlined in the brand new 200+ page manual that is available for purchase.
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