Traders win yesterday- major indexes lose
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 and Dow both
finished the day -0.2% to 1289.14 and 11,026
as did the Nasdaq to 2311. For traders, that falls into the category of "who
cares," as money was made on the long side from the
Trap Door contra moves. One example was the SPY, which hit a 128.64 low, vs
the -1.0 volatility band at 128.67 and also the 816 EMA (5-min chart). Those of
you who have
my strategy material know that to be equivalent to the long-term intraday
EMA on the 120-minute charts. The same Trap Door was there on the DIA. Of
course, you could have decided to trade the futures instead of the index proxy.
Other strategies like Flip Tops and First Consolidation Breakouts caught the
entire energy advance yesterday because these stocks had opened up, as opposed
to down openings on the major indices. Energy, semiconductors, gold/copper
continue to be day trader friendly. The QQQQ closed at 41.69, +.06% and the SPX
followed its +1.4% Wednesday to close at -.08%.
NYSE volume expanded to 1.78 billion shares, with
the volume ratio of 43 and breadth -442. The short-term internals are flat with
the 4 MA VR 49 and breadth +58. That highlights the good news/bad news noise
hyped by the media, and no one has a clue what it means–or cares–with all of
the bogus economic numbers that are fed to the public. The narrow 10-day trading
range for the SPX will be resolved quickly, if not the next three days. All
three, SPY DIA and QQQQ have favorable daily chart patterns, so breaking them
out will squeeze some shorts, and this will be a gift for index put buyers as
the SPX enters the key price zone outlined in
the trading service.
Have a good trading day,
Kevin Haggerty
