Continuation
Friday was relatively quiet, with volume of only 746 million shares and 15,250 institutional blocks of 10,000 or more shares. The techs still outperformed the averages, as evidenced by the S&P futures finishing down 4.10 to close at 1365 while the June NDX (Nasdaq 100) finished up 30.
The bonds up, stocks down scenario continued; Friday was the first day last week that declining volume outpaced advancing volume. Even though it was quiet, it was still a minor reversal day on less thrust–narrower range than Wednesday’s and Thursday’s wide-range up bars. You’ve got to be a little careful here: Don’t get caught if we trade below Friday’s low in the S&P futures or cash. Around 8:30 AM ET, things are pretty quiet; the futures are basically a push.
Target Stocks Of The Day  If they trade through your entry price, there are a few stocks to watch for continuation patterns today: Fore Systems [FORE>FORE], PSINet [PSIX>PSIX], Amgen [AMGN>AMGN] (stay with it if it trades above Friday’s high), and United Technologies [UTX>UTX].
There also are some setups in basic industry stocks (watch for the elephants to come after these). There not great day trading stocks, the dynamics must be right–you should see some buyers, and some front-running of the buyers. For these to move, you have to be able to get in ahead of the size. Watch Caterpillar [CAT>CAT], John Deere [DE>DE], PPG [PPG>PPG] Dupont [DD>DD], Rohm & Haas [ROH>ROH], and W.W. Grainger [GWW>GWW].
Two speculative momentum stocks that are set up (make sure you have the proper execution): Ameritrade [AMTD>AMTD] and CMGI [CMGI>CMGI].
Program trading numbers  Buy: 10.22. Sell: 5.14. Fair Value: 7.78.
Editor’s note: If you want to learn more about Kevin Haggerty’s trading strategies, click on the link below to go to his new series of tutorial articles.