Trading Key Price Zones and Volatility
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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The $SPX and $INDU finished small to the downside
at 1412.11 (-.05%) and 12417 (-.06%). The technology-led indexes finished
green, with the QQQQ +0.5%, $COMPX +0.2%, as did the semiconductors, with the
SMH +0.8%. The IWM was +0.9% to 77.15. The expected technology and
semiconductor leadership in January has the QQQQ +2.2% year-to-date and the SMH
+2.1% versus the $SPX -0.6% and $INDU -0.5%. NYSE volume expanded to 1.7
billion shares with the volume ratio 45 and breadth +433, with the $TRIN well
above 1.00 and closing at 1.57. The semis, brokers, transportation, retail
and drugs finished green yesterday, while energy and gold stocks finished red.
The semis are a primary focus, and daytraders
capitalized yesterday, especially in the afternoon with the SMH RST setup.
There were also first hour opportunities in stocks like KLAC, which was a
positive First Consolidation Breakout. However, the larger gains remained
in the energy stocks, with the first hour reversal after the early decline in
crude oil, and then again from the 11:45 AM – 12 PM lows for the OIH and XLE, as
crude oil ralled +3.6%. The OIH and XLE finished at -0.6% and -0.9%, and
daytraders who used the strategies like Trap Doors, Volatility Bands and RST’s
had a big green day on the long side. Trading expanding and contracting
volatility is a key component to what I call my “Core Framework.”
The current continuation $SPX low is 1403.97, and
if that gets taken out, there is some trading symmetry from 1398.50-1394 and
1390-1388. The S&P futures are -6 points as I finish this at 7:15 AM
Eastern Time, so daytraders will probably start the day using the first hour
reversal strategies. The energy sector remains in a key price zone, and
the volatility is excellent, so it remains a primary focus, as do the
semiconductors, especially on weakness accelerated by futures-induced sell
programs.
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.