Opportunities for daytraders
Kevin Haggerty is a full-time professional trader who was
head of trading for Fidelity Capital Markets for seven years. Would you like
Kevin to alert you of opportunities in stocks, the SPYs, QQQQs (and
more) for the next day’s trading?
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In a replay of Thursday,
the SPX declined -1.1% to 1291.24 on NYSE volume of 1.84 billion
shares, a volume ratio of just 15 (1.48 billion down) and breadth -1948. The
commodities sector took the biggest hit and had been the most extended in price.
The OIH going into May 11 was +41% in 43 days with hardly a pullback and copper
stock Phelps Dodge
(
PD |
Quote |
Chart |
News |
PowerRating) had made a +51% advance. These angles of advance
cannot be sustained much longer. The
(
XBD |
Quote |
Chart |
News |
PowerRating) (brokers), -5.8% and
(
SMH |
Quote |
Chart |
News |
PowerRating)
(semis), -5.7%, led the downside last week, followed by the OIH, -4.6%, IBB,
-4.5%, and RTH, -3.5%.. The QQQQ led the indices down at -4.7%, Nasdaq -4.4%,
SPX -2.6% and the $INDU, -0.7%.
The 1326.70 SPX high on 5/8 was a key price and time zone (see
5/12 commentary) and two-day decliine to 1291.24 put the index back to the
89-day EMA zone (1289.91) again, where it had bounces from the 1253.61 (2/7/06)
and 1284.74 (4/17/06) retracements. The 4 MA of the volume ratio is 31 and
breadth -1067 in addition to the 5 RSI at 20.58, so daytraders’ index bias now
swings to the long side. The .236 retracement to the 10/13/05 1168.20 low is
1289.29 and this zone is also extended down to the -2.0 3-month standard
deviation level with the -3.0 level at about 1280. Continuation weakness this
morning will be followed by a contra move, so daytraders will have opportunity.
The SPX
RST will set up if the 1280.74 low is taken out.
Have a good trading day,
Kevin Haggerty