More Pivot Points

August 7, 2000
Kevin Haggerty

The
S&P 500 ended the week +3.0% and
closed Friday just above its 50-day EMA, which you can use as your pivot point
if we head south after the five days up, with higher highs. The index closed at
1462.93, right on the high for the week. If we don’t get a continuation move
above Friday’s high, the next downside pivot point after the 50-day EMA is 1455,
based on the five-minute chart.

The Nasdaq 100
(
NDX |
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finished the week +4.06% but closed below both its 20- and 50-day EMAs, above
its 200-day EMA, but has yet to close above the high of the low day, which was
Thursday, August 3. If it is to challenge new highs, it has to clear both of
those EMAs to get above 3750, then clear the next hurdle which is the .618 level
of 4089.Â

No small task, with the
dislocation in the semiconductors right now.

The brokers and banks led
the parade on Friday, and were also the leaders for the week, both up over 10%
for the five days. The financials had been acting good and there were many good
setups on the daily charts after Thursday’s action, and that was why I put seven
of them on the Friday morning call. I hope you caught some of the move.

The trading plan is to
follow the buying pressure in stocks that the Generals are in, and when you get
convergence of multiple stocks in the group, your probabilities are higher. It
is as basic as that, but it amazes me how many people look for a more
complicated solution. A daytrade or short-term trade is about buying or selling
pressure for a very short period, not a lifetime in your
401KÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â

face=”arial, helvetica”>(September Futures)
Fair Value	size=2>Buy	size=2>Sell
9.30	10.40	size=2>8.05

Pattern
Setups

Also Scientific Atlanta
(
SFA |
Quote |
Chart |
News |
PowerRating).

Have a good trading day.

More Pivot Points

BUY THE FEAR, SELL THE GREED

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