From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.
Commentary for 7/11/12
In the previous commentary I said “selling the strength, not buying it, is the next opportunity, but only when the symmetry and technical evidence are in sync.”
The SPX made a 1374.86 high last week [7/3] versus the +2.0 STDV band on the 3 month channel chart at 1380. It was S/T-O/B for 3 straight days going into that 1374.86 high, so any pullback was no surprise, and the negative jobs report was the main catalyst.
Also, the geometric triangle formed by the 10/27/11 [1292.66] – 11/25/11 [1158.66] leg has been very consistent timing symmetry having identified the 5/18/12 1291.98 low, the 6/4/11 1266.74 low, the 6/19/12 1363.46 high, and the 7/3/12 1374.81 high last week [Source-Geometric Date Calculator] The 8/31/11-10/4/11 leg triangle also has 7/6/12 as the 1.732 extension measured from the 10/4/11 low.
The SPX has pulled back -2.8% in 4 straight down days from the 1374.81 high to a 1336.27 low and 1341.47 close yesterday, which was accelerated by the rising USD and falling XEU and the key to an excellent trading day.
When you day trade you react to price which changes dynamically all day. It is not about what it did at a previous time, only what is doing at the moment that determines whether you take the trade based on your specific criteria for taking a trade. My Trading Service is based on basic day trading strategies that are consistent and easy to identify to help you trade price and patterns with symmetry. I also explain the current market timing symmetry to anticipate and pin-point high probability reversal or acceleration zones for both investors and position traders alike. There is a 1 week free trial membership to the Professional Trading Service on the TradinMakets site.
Yesterday, the FXE had a gap-down opening and then traded straight down. However, the UUP opened in line, and then made new intraday highs on the 9:40AM bar, which was also a B/O of a 10 bar range started the previous day. The USO had opened down and continued down.
The SPX had a gap-up opening, as did the XOP and XLE [also other commodity ETFs etc.] and then reversed on the 9:40AM bar when the UUP B/O to new intraday highs, as the FXE continued straight down The market was out of sync with the dollar/euro reaction, so in this specific case the XOP and XLE were shorted on the 9:40AM bar for quick gains, while the SPX was shorted on the 9:45AM bar below 1359.83, and covered in two parts at 1353, and above 1349.33 at the 816EMA. The new intraday low momentum was also shorted below 1347.89, and covered above 1341.52 at the -1.0 VB and 50DEMA.
You can download for free 6 of my calculators that I use to measure price and time symmetry at www.geometricmarkets.com, and my new 200+ page manual “Markets Trade With Geometric Symmetry” is also available for purchase on the site. It doesn’t matter whether you are a trader, investor, portfolio manager, or analyst, because this Manual will enable to pinpoint high probability reversal zones in any market, including Stocks, Bonds, Commodities, and Currencies.
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