The market surged early yesterday, with the SPDRs
[SPY>SPY] up 1.2 percent (from 129.50 to 131.06) around 11:20 a.m. For all practical purposes,
that was the end of the day, as the SPDRs continued to trade in an unusually narrow, 5/8-point
range until the close, when they hit 131.25.
The S&P 500 made a new high and new high close, so now there’s a higher benchmark to violate
before a break in the up trend is indicated. When sellers couldn’t push the market
down yesterday afternoon, I certainly thought the media would get their Dow 10,000 party, but
what’s another day?
America Online (AOL) hit par yesterday, up 5 5/8 to 101 7/16, and Wal-Mart (WMT) is close
behind, up 5/16 to 96 11/16.
MCI Worldcom (WCOM) closed at a new high of 87 5/8 and has nothing but net to hit 100. Abercrombie
& Fitch (ANF) is a sleeper to make par; it’s
a high-momentum stock that has made a seven-bar pullback from new highs and is ready to go.
Don’t try to get cerebral–just follow the big guys as they buy more and more of their
Target Stocks Of The DayÂ Â Abercrombie & Fitch [ANF>ANF] and Gap [GPS>GPS]
both closed in the top of their ranges after pullbacks from new highs and are excellent setups
for continuation trades. Other good continuation setups include IBM [IBM>IBM], Hewlett Packard
[HWP>HWP], United Technology [UTX>UTX], and Qualcomm [QCOM>QCOM].
Interesing consolidations at their 50-day moving averages include Sanmina [SANM>SANM], AT&T [T>T], Linear Technology [LLTC>LLTC], and Nextel [NXTL>NXTL]. Entry is above yesterday’s highs.
Finally, there was strong institutional bottom fishing yesterday in Oracle [ORCL>ORCL],
Compaq [CPQ>CPQ], and Dell [DELL>DELL].
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.