Traders Enter and Exit Key Price Zones
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?
Click here for a free one-week trial to Kevin Haggerty’s Professional
Trading Service or call 888-484-8220 ext. 1.
The SPX finished at 1410.91 (+0.6%) which was a
new 15-day closing high on the reversal from the the 1365-1370 key price and
time zone, with the 1364 low on 3/14/07. NYSE volume was on the low side
again, at 1.44 billion shares, versus +1% and 1.43 billion shares on Monday.
The internals were positive with the volume ratio 73 and breadth +1407.
All sectors were green, and in line with the SPX (+0.6%) and the $INDU (+0.6%).
The one exception was the OIH at -1.2%, which was the result of the HAL warning
on profits. The XLE bounced off its intraday HAL decline to close at 57.70
(+0.7%) from an RST buy pattern at the 816 ema. The semis continue to
follow their March seasonal tendency for lackluster performance. The SMH
was +0.6% on only 50% of its 13.7 mm average 30-day volume. The QQQQ
(+0.7) traded 81 mm shares, versus its 136 mm average volume.
Daytraders made money if they played the Flip Top
first hour reversal strategy in any of the SPY, DIA or IWM, as it was a trend-up
day. There were also first hour long strategies in the commodity sectors
like ATI, GLD, in addition to the first hour Trap Doors in SLB and XLE, to name
a few of the energy stocks. The 1365-1370 key price and time zone had been
anticipated in advance in the trading service, so short term position traders
either pulled the buy trigger or not at that lowest common denominator entry
level. The next short-term decision would be a sell to take some profits
into the 1422-1426 at a minimum if the 1-2-3 lower top reversal sets up, or else
into month end, if the SPX trades higher, and you haven’t already been stopped
out.
The FOMC announcement today has more significance
due to the housing decline and subprime problem that is being exaggerated by the
media, so daytraders should be flat into the announcement. With all of the
previous positive jaw-boning by the Fed and Treasury Secretary Paulson, I would
assume the Fed would try to calm the markets today, but they certainly must be
concerned about a $US decline following any interest rate cuts, which is
tantamount to admitting what has been obvious for over a year, that the housing
problem is significant and getting worse. The daily chart today includes
retracement zones for potential 1-2-3 lower top, and if 1461.57 is taken out,
the RST is set up, but we should be so lucky. The RST is marked by lines
above the swing points to highlight the symmetry for those of you who have
learned the RST from the trading modules and seminars.
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.
