No Decision

  • January 10, 2001
  • Kevin Haggerty

We are
pleased to announce that Kevin Haggerty’s audio commentary is again available
each morning from 8:30 a.m. ET.  


Marginal
up for the
Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating) at +1.3%
and the
S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) +0.4%. 


The
(
TXN |
Quote |
Chart |
News |
PowerRating) downgrade put
the blanket over the semis. There were several decent moves in the blue-chip
techs, like
(
SUNW |
Quote |
Chart |
News |
PowerRating) (+4.7%),
(
ORCL |
Quote |
Chart |
News |
PowerRating) (+5.2%) and
(
MSFT |
Quote |
Chart |
News |
PowerRating) (+6%).
After the early up and intraday highs by 10:30 a.m., they faded to intraday lows
into the noon hour and then went sideways for the remainder of the session.


I would like to say it was
digesting Friday’s late spike, but in my heart I really don’t believe it. The
Generals have to show us their money on a broader basis. The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s on
Friday afternoon’s spike ran from 53.5 to yesterday’s early morning high of 59
1/8. After that, they declined into the noon hour and then reversed from just
under the .38 level framed from 53.5 to 59.5.


On the upside, they must
take out 59 1/8, but if they trade below 57, which is the bottom of yesterday’s
closing range, they can drop quickly to 55.5, which is the .618 level. That will
be a first possible pattern short entry on the QQQs — and then see if you get a
reversal buy entry on the pullback to the .618 level. 


Also, you should continue
to let the first trend develop, then buy pullbacks above the open or sell
retracements below the open. By doing that, you are trading with the trend and
with tight stops relative to your entry. If no trends develop, go shopping and
just shut your machine off. There’s always another day.

(March
Futures)

Fair Value

Buy

Sell

12.95

  14.25 

 11.45 

Pattern
Setups


There are some lean
pickings on the daily charts.


Stocks that set up would
be:
(
LLY |
Quote |
Chart |
News |
PowerRating),
(
AMGN |
Quote |
Chart |
News |
PowerRating) and
(
GENZ |
Quote |
Chart |
News |
PowerRating) on pullbacks to the intersection of
the past two days’ range.


Take a look at
(
TER |
Quote |
Chart |
News |
PowerRating)
(above Monday’s high);
(
KLAC |
Quote |
Chart |
News |
PowerRating);
(
MU |
Quote |
Chart |
News |
PowerRating) (on a recross of the 50-day EMA);
(
VSTR |
Quote |
Chart |
News |
PowerRating);
(
SANM |
Quote |
Chart |
News |
PowerRating) (above Monday’s high);
(
CTAS |
Quote |
Chart |
News |
PowerRating);
(
VRSN |
Quote |
Chart |
News |
PowerRating); and
(
ORCL |
Quote |
Chart |
News |
PowerRating) (if
they take out the five-week base just under the 200-day EMA).


Also
(
SUNW |
Quote |
Chart |
News |
PowerRating);
(
SNPS |
Quote |
Chart |
News |
PowerRating);
(
JNJ |
Quote |
Chart |
News |
PowerRating) and
(
TYC |
Quote |
Chart |
News |
PowerRating).


Have a good trading day and
don’t force it.

If you
have a question for Kevin Haggerty, email him at questions@tradingmarkets.com.
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