Not Quite Home
Tough tape yesterday. Early morning hype gave us the big opening, which immediately sold off–but I hope you’re getting in tune with that game, which is what it is. Fading the hype and media has been the best trading strategy since the Greenspan vigil began (FYI–we have him again today).
The S&Ps made a nice upside run, especially the techs, after reversing the opening price. So, there was a good opening reversal on the S&P 500 and on the SPDRs. The market, however, fell like a knife late in the day. Volume was very disappointing (to me) at 724 million, considering the market was rallying off a good retracement level and the 50-day exponential moving average. I really expected more. The breadth didn’t make the cut, and 10,000-share blocks numbered only a little over 14,000. It didn’t look like a new-high rally to me. The 1380-1390 level in the S&P 500 will test the resolve of the rally. The S&P futures game gets very different when you reach levels at which the institutions want to get something done.
Target Stocks Of The Day Â
| Program Trading Numbers | ||
| Buy | Sell | Fair Value |
| 9.80 | 6.25 | 8.10. |
IBM [IBM>IBM] and Cisco [CSCO>CSCO] are both at attractive levels if the institutions decide to add to positions. Also watch Qualcomm [QCOM>QCOM], Triquint Semiconductor [TQNT>TQNT], KLA-Tencor [KLAC>KLAC], Amgen [AMGN>AMGN], VISX [VISX>VISX], Xilinx [XLNX>XLNX], Solectron [SLR>SLR], and Adaptec [ADPT>ADPT], which is sitting in a nice consolidation.
Editor’s note: If you want to learn more about Kevin Haggerty’s trading strategies, click on the link below to go to his new series of tutorial articles.