Triple Witch Out Of Way: Generals Decide Direction

September 18, 2000
Kevin Haggerty

With
triple witch out of the way, we
will soon see the mood of the Generals and the perception of this quarter’s
earnings warnings.

Taking a look at the
averages, I see that Friday’s low for the S&P 500 was 1460, which is right
back to its .618 RT level of 1458. It closed at 1465.80. The 200-day EMA is
1446.30.

The Nasdaq 100
(
NDX |
Quote |
Chart |
News |
PowerRating)
hit an intraday low Friday of 3641 vs. the .618 RT level of 3650 and the 200-day
EMA 3608. The index closed at 3676. Friday’s
high of 3749 is the .50 retracement level, while the 50-day EMA is up at 3797.

Confidence will diminish
immediately if the 200-day EMAs don’t hold this time around, and we will more
than likely get a quick airpocket down.

The SOX closed below its
200-day EMA on Friday at 974.59 vs. a 200-day EMA of 984.48.Â

The RLX, although it has
rallied, is still below its 200-day EMA, as
is the DRG, which closed just slightly below its 200-day EMA.

Above the 200, you have the
BKX and the XBD, both their 50- and 200-day EMAs, but extended.Â

The energies, needless to
say, with everyone chasing crude oil prices, are above all three EMAs, the 10,
50 and 200, as is the biotech index, the BTK, which has provided some excellent
multipoint moves recently for daytraders.

The MSH tech index closed
at 1016, below its 50-day EMA, but above its 200 which is 952.65.Â

The IIX internet index has
had a 25% runup but has just retraced over 50% of that move, but is still
trading above its 200-day EMA.Â

On the other hand, the
dotcom index rallied, and failed right at its 200-day EMA and closed Friday at
803.40, which is below all three EMAs, the 10, 50 and 200.

This exercise is something
that should become second nature to you, as it helps you to determine your
trading plan and gives you a good feel for overall market and sector dynamics.

face=”arial, helvetica”>(December Futures)
Fair Value	size=2>Buy	size=2>Sell
21.55	22.70	20.40

Pattern
Setups

Watch the 200-day EMA of the QQQs as a
pivot, both long and short.

Have a good trading day and a better
weekend.

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Triple Witch Out Of Way: Generals Decide Direction

BUY THE FEAR, SELL THE GREED

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