Last 10 days of 3rd QTR will give daytraders excellent opportunities
Kevin Haggerty is
the former head of trading for Fidelity Capital Markets. His column is
intended for more advanced traders. Kevin has trained thousands of traders
over the past decade. If you would like to be trained by him,
ext. 1
It was a big NYSE volume day at 2.54 billion
shares with option expiration and heavy rebalancing volume with afternoon price
changes, as is evidenced by
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along with
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essentially a
Slim Jim last 90 minutes as program after program hit the NYSE
floor, and the market-on-close volume was also very heavy. The volume ratio was
70, yet breadth was only +624, which highlights the significant program
activity. It is interesting to note that program volume as a percentage of NYSE
volume for all of 2005 as of 08/31/05 was 56.8%, up from 50.6% in 2004. The
bigger that percentage, the less helpful many of the standard market indicators
have, and will, become. However, it does not effect the "Core Framework," and in
fact, helps accelerate price to unsustainable extended levels, which are
high-probability situations for sequence traders.
The SPX
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did the Dow to 10,642 and about 4 points was tacked on to the SPX from
2:45 p.m. ET into the close. The
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bolstered by the financials, which are currently about 20% of the SPX. The BKX
was +1.9% and the XBD +1.1%, while the CYC, PPH and
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the SPX. The downside consisted of the RTH, which was -0.2% and the
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-0.3%. On the commodities side, the
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week, while the XAU was +3.8% on Friday and +7.6%. Our core focus gold stock,
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entry (see 09/15/05 commentary).
There are 10 trading days left in the third
quarter, and it should be a good opportunity for daytraders to capitalize on
volatility both ways. The Generals will make every effort to mark prices up into
quarter’s end. (It’s not about the current fundamentals.) If the SPX can hold a
decent level this week, the Generals might be able to run in many of the
existing short hedge fund players as they push the SPX to a new high. If the
major indices should have a downside air pocket this week, look for it to
reverse quickly as the Generals come to the quarter’s rescue.
The Wave 5 guidelines have been published several
times in previous commentaries and will be reviewed in this week’s "Inner
Circle."
Have a good trading day,
Kevin Haggerty