Daytrading Opportunity

• June 29, 2004
• Kevin Haggerty

What Monday’s Action Tells
You

The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) moves from 1124 to
1146
and back to 1132 has been some needed travel range for the synthetic
straddles,
and I expect that to reverse again this week. The SPX closed yesterday at
1133.52, -0.8%, for the third down day in succession, and -1.6% for the
three
days after the 1124 – 1145 move last Tuesday and Wednesday. The travel range
into the June report card was expected, and the movement has all been in the
first hour, especially the opening and after 2:00 p.m. ET as the Program
Gang/rebalancing/window dressing is front and center.

Yesterday was an early up and then a Slim Jim
all
day until a knife down at about 2:00 p.m. The Slim Jim for the SPX was
1142.60 –
1139.41 and the breakout was down to 1131.62, closing at 1133.35. For the
(
QQQ |
Quote |
Chart |
News |
PowerRating), it was 37.52 – 37.32, then down to 36.91, closing at 37.02. I see
that the Globex ESU4 move from Friday’s 1135 close to 1144.75 high yesterday
on
the 8:00 a.m. bar was faded for a nice chop by one of last weekend’s seminar
attendees, so that is certainly coming out of the box on the plus side. I
just
hope the regulators don’t ever interfere with the pre-9:30 Disneyland
futures
action and Globex which is the basis of many first-hour trades.

This week should have more travel range as
there
is a Fed meeting/rate action today/rate action on Wednesday, in addition to
about five to six economic reports, including the first-Friday-of-the-month
jobs
report dance. The June report card ends Wednesday, right in front of the
July 4
holiday weekend, so these coming four days should provide some daytrading
opportunity.

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