Show And Tell

April 1, 2002
Kevin Haggerty

The early futures are
bright red at 6:30 a.m. ET, with the S&Ps -8.10, the Nasdaq -23, and the Dow
-28, but we do know that the pre-market game can change on a dime. Below 1146,
it’s trend down for the SPX on the five-, 15- and 60-minute, and also on the
daily chart. Below 1142.20 puts the index below its 30-week EMA. The last swing
point low was 1131.61, with minor support and the .50 retracement at 1125, with
the .618 at 1112.40. For those of you that have the volatility
band service, you are all set if the early red continues through the open.
The volatility bands in conjunction with deep Trap Doors is extremely effective.
The VIX closed above the previous seven days’ closes on a wide-range bar, and I
see that the CVR 1, 2 and 6 point down.

Earnings mania has
started again, and it seems like it never ends with all of the ridiculous
guidance. I am happy to have read from several sources that the operating
earnings vs. GAAP reported earnings fraud is finally getting some publicity. You
are the ultimate victims if you fall prey to this farce perpetuated by the
reporting companies and supported by the media and various Wall Street firms. I
repeat: Do not make a fundamental position decision simply
on operating earnings. Check the reported earnings and read the footnotes.Â

The first few days of the
month usually has the Generals put some new money to work, but looking at the
early red today, we will wait for the evidence.

Stocks
Today

I saw no compelling
setups on the daily charts, and I will certainly stay away from the semis on any
kind of continuation entries because there are several of them, the major ones, that
were marked up on Thursday, and we’ll have to wait and see how they trade.Â