• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
      • Contributors
        • Larry Connors
        • Kevin Haggerty
        • Matt Radtke
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / Stocks / Commentary / Weak Market Infrastructure

Weak Market Infrastructure

February 9, 1999 by Kevin Haggerty

Yesterday, volume and institutional block activity
dropped
off noticeably. The techs tried to make up some of last week’s 12-15 percent loss, with Dell,
Microsoft, and Intel–the best of the bunch–all gaining approximately 3.5 percent.

But the tape is just plain ugly. Breadth has been negative for the sixth day in a row, and
only
32 percent of NYSE stocks are above their 200-day moving averages. In addition, each day brings
more 52-week lows than 52-week highs–even though the market is near its highs. What’s that
all about? The financials are in the doghouse: The Philadelphia bank index and utility index are
both mired under their 200-day moving averages. Interest rates, anyone?

The bottom line: The techs haven’t corrected enough. The financials must rebound and breadth
must improve before the market can get going again. The cyclicals won’t be able to carry the
speculative bubble all by themselves.

Intra-day trading opportunities still look better than position trades, from both profit and
risk standpoints. The only exceptions are some of the cyclicals we’ve discussed (remember to use
tight stops). Intra-day volatility in recent market leaders continues to provide trading
opportunities, like the ones in Gap [GPS>GPS] yesterday (see Monday’s commentary and an
intra-day chart). Another example is Yahoo [YHOO>YHOO], which dropped to 154 5/8 after breaking out of the
pattern below 167 1/2.

Target Stocks Of The Day  Amgen [AMGN>AMGN] is in a narrow-range pattern,
similar to
Yahoo yesterday, and could move on a breakout of yesterday’s high or low. Equant NV [ENT>ENT] is
a continuation pattern that could break to new highs; it made a good reversal yesterday after
gapping down on the opening. But the tape must be on your side for this one to work.

CVS [CVS>CVS] didn’t give an entry opportunity yesterday, but it is still a continuation
pattern that could move above yesterday’s high. Pfizer [PFE>PFE] is a tease; it made a higher
high, low, and close yesterday, and could make a run at new highs above 134 1/2. Ford [F>F]
closed yesterday at 58 7/8
on a re-cross and close above its 50-day moving average. It’s a good continuation pattern but
it needs a good tape today to get going.

Filed Under: Commentary, Day Trading, Recent

About Kevin Haggerty

From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2022 · News Pro Theme on Genesis Framework · WordPress · Log in