How to gain the trading edge
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?
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Trading Service or call 888-484-8220 ext. 1.Â
The $INDU (-0.4%) made a
new low in this current decline and closed at 11,002, but above its
200-day EMA at 10,954. The SPX finished at 1263.83 (-0.1%) with the 200-day EMA
at 1263.50. The initial symmetry zone for the Dow yesterday was 10,926 – 10,924,
and that is where the Dow reversed for a +81-point gain. Traders also made money
on the SPX reversal off the 1254.46 low (key price zone). 1255 – 1254 has
symmetry with four different measurements in price and time, in addition to
233-day EMA just above at 1256.95. I consider a longer-term moving average zone
to be the 200-233 DEMA spread. All of these anticipated key price and time zones
are outlined daily in the
Professional Trading Service, which makes it easy to pinpoint major and
minor market reversals. Both the SPY and DIA were down to their -1.5 volatility
band zones yesterday, so traders had the necessary information that supported a
high-probability intraday reversal, and that is what happened. Energy, gold,
copper and steel stocks all had continuation early weakness yesterday following
the extended downside on Monday. This was perfect for traders, and there were
some excellent RST and volatility band reversals in many of the key
commodity-related stocks.
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NYSE volume expanded to 1.89 billion shares with a volume ratio of 33 (1.26
billion shares down) and breadth -988. All of the primary sectors closed red
except a marginal +0.2% gain for the
(
PPH |
Quote |
Chart |
News |
PowerRating). The
(
TLT |
Quote |
Chart |
News |
PowerRating) was +0.5%, and
this helped NYSE breadth numbers, seeing that 35% of NYSE listed stocks are
interest-rate sensitive.
There are a few positive momentum divergences setting up into the next time zone
in a few days, so watch for a quick upside reflex. Failure here and a re-cross
to the downside of the 200-233 EMA zone by the SPX and Dow will obviously
accelerate the selling. Traders will continue to be profitable by taking
advantage of extended volatility after reaction–and it doesn’t matter whether
they are up or down.
Have a good trading day,
Kevin Haggerty