End Of The Month Check-Up
It’s the last trading day of the month. As of yesterday’s close, the S&P
cash was up 1.3 percent on the year. A program rally kicked in from 1:00-4:00 p.m. eastern time
yesterday, but the move didn’t appear to have much institutional support.
The big tech issues continue to consolidate after their recent sell-off–the “Generals” are
settling in right at their 50-day EMAs, with nothing but air below. If they don’t hold here,
look for another 10-15 percent down move to their 200-day moving averages. (I would think the
institutions would try to hold on to their bread winners a bit longer and make them good
to the upside.)
Target Stocks Of The DayÂ Â If the market rallies today, look for continuation
entries in America Online [AOL>AOL], Charles Schwab [SCH>SCH], Scientific Atlanta [SFA>SFA],
Allergan [AGN>AGN], Best Buy [BBY>BBY],
Avon [AVP>AVP], Northern Telecom [NT>NT], Ameritech [AIT>AIT], and Amgen [AMGN>AMGN].
The “Final Four”–Cisco (CSCO), Dell (DELL), Microsoft (MSFT), and Intel (INTC)–are selling
off as I write this. But after the retail electronic sell order flow gets taken out on the
low side (as usual), look for good counter-opening rallies in these stocks after 9:45 a.m.
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.