Trader Focus Remains Reversal Symmetry in Blue Chips
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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After taking out the 1461.57 high (2/22/07), the
SPX has traded to a new cycle high of 1498.02 (+2.5%) and has yet to close below
the low of the new high day, which remains 1491.17, until 1498.02 gets taken
out. The 13000 $INDU level was taken out last week as anticipated (4/25
commentary), and the expected continuation strength in the energy sector carried
the OIH to a +5.4% gain last week, to lead all sectors. The OIH closed at 160.06
with the bull cycle high at 169.75. In the real world, the economy continues to
slow, inflation is rising and the US Dollar is on a dangerous cliff, as the
world’s US Dollar holders know the above and it is also evident that the Fed is
trying to inflate its way out of the predicament. However, the major indices
continue to make new cycle highs and extend the time symmetry of this bull
cycle. Is the PPT that good? They can only keep their thumb in the dyke for so
long.
Today is the last day of the month followed by
the first 4 days of May, which have a positive seasonal bias. However, there has
been no real pullback since the 1364 low, and there is some time symmetry for
the first 6 days of May, so it is also a potential reversal zone on continuation
strength into this time period. Also in the mix now is the negative seasonal
period from May through October, so if "they" expect to take out the SPX 1553
3/24/00 top, they will have to get it done sooner than later.
Traders should continue to capitalize on the many
1st Hour reversal strategies due to the pre-market futures news, and the very
inefficient 9:30 AM opening process, attributable to the mostly electronic
opening procedure. This is a major bonus for daytraders, who are aware of
specific strategies like Trap Doors and RSTs, in addition to Volatility Band
levels, all of which are available in the Trader’s Modules. The blue chip stocks
continue to produce the best pool of trades for daytraders.
Have a good trading day,
Kevin Haggerty
Check out Kevin’s
strategies and more in the
1st Hour Reversals Module,
Sequence Trading Module,
Trading With The Generals 2004 and the
1-2-3 Trading Module.