It’s Game Time!

  • June 26, 2000
  • Kevin Haggerty

As I was out Friday
setting up for the
seminar, I don’t have a good, close feel for Friday’s action. I do
see that the QQQs broke Thursday’s 94 1/2 low, and then traded down to 91 3/8,
so I hope you caught part of it. It’s game time this week with the FOMC meeting
Wednesday, but it’s also report-card time again and at a key six-month ending
period for the Generals. It will take a negative surprise for Mr. Greenspan to
keep the Generals from making up the S&P 500’s -1.9% year-to-date
performance. The bias is up. The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) closed Friday at 3685,
just above its 50-day EMA of 3683, and its proxy, the QQQs closed at 92 with a
50-day EMA of 91.92.  


The bias at the six-month report card,
as I said, is up and the overweighted tech sector means those key tech stocks
will be moved to the upside if possible, and your trading plan should reflect
this bias. On the short side, if there‘s a
negative from Mr. Greenspan, then the QQQs can be the short of your choice, as
breaking the 50-day EMA could see the Qs trade down to its 200-day EMA of 85.88
or in that zone. When a trading vehicle is right at an inflection point, as the
QQQs are right now with the 50-day EMA, it makes it easier as you can use it as
a pivot point, both long and short. You keep tight stops but to move away from
that pivot point can be decisive. 


I also see where the biotechs and
semiconductors led Friday’s action and certainly a continuation of recent
action. You start out early this morning with the S&Ps +6 1/2 and many of
the techs and related looking green in the early trading in Instinet. 

Program
Trading Numbers

(September Futures)

Fair
Value

Buy

Sell

20.40

21.60

19.30

Pattern Setups  

American International Group
(
AIG |
Quote |
Chart |
News |
PowerRating), Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating) (on a recross of the 50-day EMA),
Johnson & Johnson
(
JNJ |
Quote |
Chart |
News |
PowerRating), Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), Sycamore Networks
(
SCMR |
Quote |
Chart |
News |
PowerRating),
Nortel
(
NT |
Quote |
Chart |
News |
PowerRating), Medarex
(
MEDX |
Quote |
Chart |
News |
PowerRating), ADC Telecommunications
(
ADCT |
Quote |
Chart |
News |
PowerRating), Micron
Technology
(
MU |
Quote |
Chart |
News |
PowerRating), Integrated Silicon Solution
(
ISSI |
Quote |
Chart |
News |
PowerRating), and Silicon Storage
Technology
(
SSTI |
Quote |
Chart |
News |
PowerRating).

For all of you who attended the
seminar, thank you very much. I enjoyed it and I enjoyed meeting everybody. I
certainly learned a lot and I hope you received some benefits that will help
you.

Have a good trading day.