Here’s How You Can Find The Best Intraday And Short-Term Trades

May 12, 2003
Kevin Haggerty

The Dow, which has traded down from
its rally high on May 6 of 8640 to the 200-day EMA around the 8480 zone, held
that level all Thursday afternoon and this pivot level was the reflex starting
point on Friday as it traded back up to 8613, closing at 8605. That reflex is
certainly positive coming from a key level. The SPX held the 920 zone on
Thursday and closed at 933.41, right at the top of Friday’s range.

Last week had some longer-term
factors at work, but also a confluence of shorter-term price and time dates.Â
Some say that it is better to use calendar days, while others say trading days.
I use both as awareness zones, just as I do some key simple and exponential
moving averages. After all, they are just awareness levels which makes you zero
in on price action and are very often at turning points or within a day or so. I
think for much longer time periods, trading days are more valid, but on the
shorter term periods, which I consider 233 days or less, they both come into
play.

The BBHs, which have pulled back to
the 20-day EMA on Thursday, provided profitable opportunities on Friday with
trade-through entry, re-crossing a 20-day EMA around 100 and trading up to
101.62.

Selecting your stocks from the good
daily/weekly chart setups provides the best intraday and short-term trades. You
are just positioning yourself to ride the train when the Generals return to an
obvious trend that has retraced to a level where there might be some re-entry
activity.

The SPY, QQQ, and SMHs have only
retraced their 8-day EMAs after the two days down, then closed above it with a
higher low, high, and close on Friday, so it is still certainly trend-up until
proven otherwise. Eight day EMAs become the first intraday pivots for all three
of them today if the indices go red.

In the semis, Micron Technology
(
MU |
Quote |
Chart |
News |
PowerRating)
should also be on your watchlist as it continues to build up some volume and
could get going out of its classic pattern that it is currently in.

You are, of course, ready for any
continuation in the previously mentioned biotech stocks. We are prepared for any
downside in the major indices with early pivots and you have a few ideas for any
upside continuation and that’s what we are supposed to do every day.

Have a good trading day.

Five-minute chart of
Friday’s SPX with 8-, 20-,
60- and 260-period
EMAs

Five-minute chart of
Friday’s NYSE TICKS

Here’s How You Can Find The Best Intraday And Short-Term Trades

BUY THE FEAR, SELL THE GREED

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