Early Green Light
SPECIAL NOTICE: Be sure to tune into CNBC at 1:20 p.m. EST today to see TradingMarkets.com co-founder KEVIN HAGGERTY discuss day trading.
Early Green Light  Right now (approximately 8:30 a.m. EST), the futures are green, we’re well into buy program territory, and the Nasdaq leaders (Microsoft, Dell, Cisco, Intel) are all green. It looks like it could be a gap up day.
A few words on last week: While Friday was an inside day on the S&P 500 and did nothing to change Thursday’s up direction and close, it dampened enthusiasm for stocks. There are a couple of days left until the end of the quarter and the first two or three days of reinvestment. Be ready to jump on board if the institutions come for them.
As I mentioned last week, if the market shakes some longs by testing (or dropping below) the 50-day exponential moving average (EMA), the re-cross to the upside could be a very strong move. But right now, that doesn’t look like it will happen.
Target Stocks Of The Day  Stocks with excellent patterns near highs that could run if you get entry include Costco Companies [COST>COST], Claires Stores [CLE>CLE], Amgen [AMGN>AMGN], MCI Worldcom [WCOM>WCOM],
and United Technologies [UTX>UTX].
Cisco [CSCO>CSCO] is still locked in a trading range at its 50-day EMA. Look for intraday buy patterns if it sets up between 104 1/2-105. If the techs accelerate this week, Cisco will challenge the top of its trading range high (on a closing basis) of 107 7/16. Schwab [SCH>SCH] is pushing par, having closed at 93 on Friday. Also keep an eye open for entry opportunities in Abercrombie & Fitch [ANF>ANF] and Wal Mart [WMT>WMT]. Look for good intraday entry when you see the “elephants” come after these favorite stocks.
Finally, a narrow-range pattern that looks strong if you get entry in the direction of the trend is Kohl’s [KSS>KSS], which has pulled back from its highs.
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.