One Day In The First Hour

March 27, 2002
Kevin Haggerty

Another
strange day as the major indices were
run up to their intraday highs by 10:30 a.m., then declined all the way back
down just above their opening intraday lows before a mini-rally about 3:00 p.m.
to close at the equilibrium point of the day’s range. The big difference
yesterday was the early buy opportunity. The
(
QQQ |
Quote |
Chart |
News |
PowerRating)s hit a 35.40 low on the
opening bar, down from the previous day’s 35.68 close. It reversed that first
bar right at the .618 retracement point and ran to 36.42 by 10:30 a.m. Thank you
very much.

(
KLAC |
Quote |
Chart |
News |
PowerRating) gave you a
Trap Door entry on the fourth bar above 63.71 and ran to a 65.80 intraday high.
You got the same opportunity with
(
AMAT |
Quote |
Chart |
News |
PowerRating) with Trap Door entry above 50.90
and then advancing to an intraday high of 52.94. If you chose
(
NVLS |
Quote |
Chart |
News |
PowerRating), you
got Trap Door entry above 50.95 and the stock ran to 53.10. I’m referring to
bars on your five-minute charts. The
QQQs ended the day with the most volume since March 4 and gave us another nice
trade from a key inflection point.

Volume picked up a bit
yesterday, but was still 5.0% below average at 1.2 billion. The volume ratio
turned positive at 57, and breadth was +756. Most of the sectors were green
except for gold. The semis and basics were the better relative performers. The
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) was +2.1% on the day.

Yesterday’s action was
excellent for daytraders if you took the early opportunities, and you should not
have missed the QQQs, KLAC, AMAT and NVLS if you were focusing on them. From a
position standpoint, yesterday did nothing for me at all. The bias is still up
through Friday and hopefully the first few days in April. After that, unless the
Generals show up in size, the indices look like they want to work lower some
time in April

Have a good trading day.