Three Opportunities

June 6, 2002
Kevin Haggerty

Most of the tech indices
finished green, along with the cyclical index +1.4%, retail +2.2%, and both
banks and brokers green. The contrary
(
XAU.X |
Quote |
Chart |
News |
PowerRating) was -2.9%, along with the
oil service index -2.3%.Â

The Trap Doors in the
indices and
(
SMH |
Quote |
Chart |
News |
PowerRating)s were the first to find morning play, but they were short
runs before turning south. The SMHs went straight up for the first several bars,
then south before setting up a Trap Door with a signal bar at 9:50 a.m. They ran
for 60 cents and also gave you a second entry above the previous day’s high of
38.10. Both trades were scratched as the SMHs traded down to an intraday low of
37. We had a good SMH trade off the 1,2,3 higher bottom with entry above 37.19
and then again above 37.31. They ran up to 38.15.

The SPX also gave you a
Trap Door, then a 1,2,3 higher bottom. If you missed the first two games, then
maybe you caught the symmetrical triangle breakout above 1045, which ran to
1050. That was the Program Gang accelerating the market at 3:25 p.m., a familiar
time frame. If you missed all three opportunities, then you must work on your
pattern recognition or else switch sports.

For those of you working
with the 820 Identification learned at the seminar, you have the three intraday
time frames positive for the SMHs, which keeps you taking intraday long setups
until proven otherwise. The daily and weekly are, of course, still negative.
First resistance on the weekly is 40.50 – 4,1 and then at 42. On the daily
charts, it’s at 38.50 – 39, and then again at 40. The intraday long SMH setups
are better taken like yesterday’s 1,2,3 higher bottom rather than up into the
resistance previously mentioned. For
the SPX, getting to 1060 could be easy if the Generals show up. But it won’t be
so easy getting through the 1060 – 1090 zone short-term.

Why do I feel the market
indices were down yesterday in spite of the SPX +9 points and the Dow +109? I
guess it’s the way they traded after the early up, then a Program boost in the
last half-hour. Maybe the Generals will see all of the flashing green CVR
signals today on our site and come to play the longside with a little bit of
gusto.

Stocks
Today

The semis finished at
below-average volume for our focus stocks after the early flash up, so just roll
the list over for today in case the Generals show up.Â

Have a good trading day.

Five-minute chart of
Wednesday’s SPX with 8-, 20-,
60- and 260-period
EMAs

Five-minute chart of
Wednesday’s NYSE TICKS

Three Opportunities

BUY THE FEAR, SELL THE GREED

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