Trading strategies in play yesterday
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
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The SPX remained essentially flat on the week, despite all of
the Dow 12,000 hype, economic and earnings reports. SPX closed at 1366.89
(+.07), and that is what it is on the week. This is also indicated by the
4 MA’s of the volume ratio at 49 and breadth +415 . The advance continues
on fewer stocks, pushing the index, which is also evident when you look at a
moving average of NYSE new highs vs the SPX price advance. The semis have
headed south the past 3 days, with the SMH -5.3%. Yesterday, AMD
(earnings) imploded and closed at -13.3%
(
AMD |
Quote |
Chart |
News |
PowerRating). Traders who are
familiar with my strategies had an excellent trading day yesterday in the energy
stocks. There were 1-2-3 higher bottoms in the OIH and XLE with excellent
symmetry. This of course was the same for many of the component stocks, in
addition to a few RST setups, like
(
VLO |
Quote |
Chart |
News |
PowerRating).
NYSE volume was 1.63 billion shares, with the volume ratio 54
and breadth +415. $INDU closed at 12,012 (+0.2), which made the media
happy, as they continue to hype it and spin any negative news. The SPX
daily range yesterday was only 6 points, which took traders out of the game, as
most of the action was sideways with no real travel range. The commodity
sector led, as the $HUI (gold stocks) was +3.7%, OIH +3.5% and XLE +2.1%.
The energy rally yesterday coincided with the 1-2-3 double bottom pattern
reversal for crude oil (CL06) at 11:15 AM, which closed +1.5%.
The pre-market futures are small to the downside, and OPEC cut
production (expected), so the energy stocks should have some volatility again
today. There are only a few weeks until the mid-term elections; any
technical declines from the obvious overbought condition will be small.
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.