Pivot Point And RT Launch

September 20, 2000
Kevin Haggerty

Pivot-point success yesterday as
both the NDX 100 and S&P 500 opened higher, then pulled back to their
200-day EMAs and reversed to the upside.Â

The QQQs opened at 90 3/4,
+7/8 above Tuesday’s close of 89 7/8, then pulled back to 89 7/8 and then
recrossed the 200-day EMA of 90.12. The Qs traded to an intraday high of 93.78,
closing at 93 3/8. That was an
excellent move for the QQQs.

The NDX 100, led by the
semis, finished the session +4.7%, while the S&P 500 advanced 1.1%.Â

This rally was
tech-specific, with the 200-day EMA pivot as a launch pad. You had it in your
trading plan going into yesterday. I hope you pulled the trigger on these
textbook pivot-point entries.

The semis exploded, with
the SOX up 8.1%, recrossing the 200-day EMA pivot point non-stop to close at the
top of its range.Â

This also set up RST buy
patterns that you learned at the seminar.

There was convergence with
the SMHs, which are the semiconductor HOLDRs, which hit an intraday low of 80
1/2 on Monday vs. its exact .786 RT of 80.69.

Both Intel and Micron gave
early entry yesterday from two of my favorite early session patterns, Intel
advancing from a Flip Top and Micron giving you the Opening Reversal. Both
of these are in the TradingMarkets guide and I cover them in addition to other
clearly defined patterns at my seminars.Â

There will be another
seminar in February and one in June, 2001.

The good news was the techs
yesterday, but the rest of the market wasn’t as exciting. Volume advanced to
1.025 billion, but the breadth was slightly negative at -112 advancers over
decliners, and the volume ratio was only 49. This
neutral action did not support the tech move.

face=”arial, helvetica”>(December Futures)
Fair Value	size=2>Buy	size=2>Sell
21.00	22.40	19.85

Pattern
Setups

We must be ready for any continuation
moves above yesterday’s highs in many of the techs, but go light on first entry
and then look for an intraday buy pattern below yesterday’s highs. The second
entry above yesterday’s highs will be a better trade and
indication of follow through by the Generals.Â

Going into today, there will be an
early wait-and-see attitude if there is any follow through. But if there is,
there will be a tremendous amount of front-running in these tech stocks, which
is a gift for day traders.

Have a good trading day.

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Pivot Point And RT Launch

BUY THE FEAR, SELL THE GREED

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