Did You Catch These Moves?
Kevin Haggerty is a
full-time professional trader who was head of trading for Fidelity Capital
Markets for seven years. Would you like Kevin to alert you of opportunities in
stocks, the SPYs, QQQQs (and more) for the next day’s trading?
Click here for a free one-week trial to Kevin Haggerty’s Professional
Trading Service or call 888-484-8220 ext. 1.
In the commentary for 1/25/07 (Stock/Bond Swaps Accelerate Rally), I gave you
the initial key price zones in play on any continuation of the advance, which
are the 1364-1371 and 1383-1387 zones. That day, the SPX went on to make a
1368.50 intraday high on the 9:35 AM bar, after a significant gap up opening
into the key price zone, which had other significant price and time symmetry.
Trading Service members took advantage of this anticipated short zone, and the
SPX declined to 1327.50 from the 1368.50 high. How did you do that day?
In the commentary for Wednesday, 1/30, I said the best long opportunity
before the Fed rate cut announcement would be a discount opening setting up a
First Hour reversal strategy. The SPX was -9.2 points to 1353.12 and made a Trap
Door reversal to 1362.29 and then went sideways into the Fed announcement of
cutting both the discount and the Fed Funds rate by 50 basis points. The SPX
made an up-down-up knee-jerk reaction to the Fed, and the SPX hit the key
1383.-1387 zone with the 1385.86 high on the 3:05 PM bar. The reversal strategy
from this zone caught the SPX decline to 1352.95. Nice day at the office. The
significant symmetry for this zone is outlined in the Trading Service commentary
for 1/31, which you can view with a 1-week free trial. The SPX futures were
trading at 1335 in Globex after the close Wednesday, and this carried over to
yesterday, and the SPX hit 1334.08 on the discount opening, which set up the
Trap Door reversal at the -1.0 Volatility Band 1337.42 level. The SPX ran to a
1385.62 high after entry, before closing at 1378.50. The volatility may be chaos
to some traders, but not to those who know how to identify and react at these
high probability zones, which are anticipated in advance in the Trading Service.
The SPX futures are +21 points at 8:00 AM as MSFT offers to buy YHOO at $31 a
share versus the 19.18 close yesterday. If this carries through the opening, it
will put the next key price zone in play, which is outlined in the Trading
Service. The SPX was +9.1% in 6 days to the 1385.86 high on Wednesday, and a .50
retracement on a percentage basis is 9.75%, or 1394, while a .50 retracement in
points to 1576 from 1270 is 1423. If the jobs report comes in high today, it is
absolutely bogus because the Bereau of Labor and Statistics always subtracts
jobs in January, and the number is lower than expected (John Crudell, NY Post).
The Fed painted a key negative picture in their statement on Wednesday in their
rate cuts, and a bogus jobs number or a MSFT takeover of YHOO is not going to
change that. The SPX will decline again to test the 1270.05 SPX low, or make a
lower low before this bear market is over.
Check out Kevin’s strategies and more in
the
1st Hour Reversals Module,
Sequence Trading Module,
Trading With The Generals 2004 and the
1-2-3 Trading Module.
Have a good trading day,
Kevin Haggerty