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 10/23/12
In the previous commentary I said that the SPX remains O/B on a monthly basis and has a 123 monthly negative 5 RSI divergence into the 10/6/12 Pi symmetry time period. The Pi cycle [including Square Root and Fib symmetry, has been 100% in identifying key market reversals since this secular bull market started in 2000, and if you have my manual “Markets Trade with Geometric Symmetry” you know how consistent the results have been historically over any time period, and you also now know how to identify, calculate and anticipate these High Probability market turns.
The SPX made a 1470.96 Pi time period high on Friday 10/5/12 versus the previous bull cycle 1474.51 high on 9/14/12 and then declined to support at the 50DEMA and also previous price range support. The index bounced to 1464.02 on 10/18/12 and has since declined to new short-term trend lows at 1411.59 and counting as of the 10:30AM 5 min bar this morning.
In the Trading Service members have been aware of the 10/6/12 Pi time period and 123 negative 5 RSI monthly divergence, and now the anticipation is for a Phi [Fib] time date in the 10/29/12 period. The initial support zone is the 1425-1395 price zone followed by the 1372 200DEMA zone which would only be a -7.0% correction from the 1475 cycle high. The Phi date is calculated using the 10/4/11-10/29/12 leg [391 CD], the number of CD`s from 6/4/12-10/29/12 [147 CD], and the 10/4/12-6/4/12 leg [244 CD`s]. The Pi cycle, and Phi symmetry method is explained in the “Manual”.
The SPX has now made 2 higher highs and two lower lows since the 1475 high, which all of you technocrats know is a confirmation of a short-term downside trend change, and a S/T-O/S condition [daily chart] going into the Phi time period makes it highly likely that the SPX will bounce into the November positive seasonal period on a technical basis.
I have included the Fib RT`s from the 1474.51 high to 1266.74 [6/4/12] which is the last significant low and the calculator also has the Fib EXT levels for the last leg up from 1425.53 to 1464.02 Also, I have included the Square of 9 angle levels from the 1474.51 bull cycle high.
There is no attempt in this commentary to handicap what is the most important Presidential election in our time, and that dates pretty far back for this corner.
You can download for free 6 of my calculators that I use to measure price and time symmetry at www.geometricmarkets.com, 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 product will enable you 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.