Get The Best Day Trades On A Consistent Basis…Here’s How
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Yesterday was simply a nice bonus day,
with Trap Door entries in the SPY
(
SPY |
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Chart |
News |
PowerRating), E-minis
(
ESM3 |
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Chart |
News |
PowerRating), futures
(
SPM3 |
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Chart |
News |
PowerRating), and the Diamonds
(
DIA |
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Chart |
News |
PowerRating) that went trend-up for the remainder of
the session all with higher and lows. The E-minis’
Trap Door signal bar was
right on the 240 EMA on the 5-minute chart with entry above 930 carrying up to a
943.75 intraday high, but was locked in a 942-946 range from 10:45 AM to 4:00
PM. That range should come into play either way today. The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed at 945.11, +1.2%, and the SPY at 94.90. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed at 8726.73, +1.4%, with the Diamonds going out at 87.39. The QQQ
(
QQQ |
Quote |
Chart |
News |
PowerRating) closed at 28.85, +1.6%, and the SMH was +2.1%, closing at 28.54.
NYSE volume expanded just a little to 1.36 billion. The volume ratio was
strong at 85 following Friday’s 79. Breadth was also very positive at +1267
following +1316 the previous day.
The story for us wasn’t the major indices yesterday, but it was the stocks we
were prepared for on our list. That was the bonus. Good trade-through entry was
had for Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating) +4.8% entry to intraday high and the same for Hotels.com
(
ROOM |
Quote |
Chart |
News |
PowerRating), +4.9%; USA Interactive
(
USAI |
Quote |
Chart |
News |
PowerRating) was +4.8% and Paccar
(
PCAR |
Quote |
Chart |
News |
PowerRating) was +2.4%. If you took the brokers, Lehman
(
LEH |
Quote |
Chart |
News |
PowerRating) gained 2.6% and Morgan Stanley
(
MWD |
Quote |
Chart |
News |
PowerRating)
+3.2%.
The gains were higher if you took the Trap Door entries on all of these
stocks. Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating) was +1.4% after entry, Gilead
(
GILD |
Quote |
Chart |
News |
PowerRating) +1.8%, while
Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating) took a break after the big day on Friday, closing in an
inside bar pattern near the top of Friday’s range.
If you traded the BBHs
(
BBH |
Quote |
Chart |
News |
PowerRating) instead, they ran from 101.50 entry
level to a 103.70 intraday high.
Sun Micro
(
SUNW |
Quote |
Chart |
News |
PowerRating) made another run yesterday, and was +9.3% on another
big volume day since coming out of that weekly symmetrical triangle. See
the
May 7 commentary.
The key point here is that the scroll list of above-the-line setups with
better relative performances than the indices will give you the best day trades
on a consistent basis. That, of course, is reversed for declines. We can’t know
that
the Generals will return the next day, but we can be ready for them if they
do by anticipating the specific stocks.
All the major indices and also the
(
BKX.X |
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Chart |
News |
PowerRating),
(
XBD.X |
Quote |
Chart |
News |
PowerRating),
(
CYC.X |
Quote |
Chart |
News |
PowerRating)
and
(
RTH |
Quote |
Chart |
News |
PowerRating) are at their six-month, 2.0 standard deviation band, and today is
the third day up in this current reflex.
There will be no heroes in this corner. I prefer pullback intraday trades today
and only second entry breakout trades.
Have a good trading day.
Kevin Haggerty
Five-minute chart of
Monday’s SPX with 8-, 20-,
60- and 260-period
EMAs
Five-minute chart of
Monday’s NYSE TICKS
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