Year End

December 26, 2000
Kevin Haggerty

Friday
was an explosive gift to daytraders as
the NDX 100
(
NDX |
Quote |
Chart |
News |
PowerRating) gave us +9.5% and the S&P 500
(
SPX |
Quote |
Chart |
News |
PowerRating) +2.4% while
the Dow, overshadowed by the tech outburst, advanced 1.4%. The volume was good
for a pre-holiday, with NYSE volume just over 1 billion, a volume ratio of 77
and advancers over decliners by 1,149. Block trades were lower at 22,683.Â

On the intraday charts,
there was one excellent pullback setup in the S&P 500 after the explosive
early up move, which lasted until 11:10 a.m. The SPX had pulled back to its
260-EMA on the five-minute charts, which also was the intraday .618 RT level.
When you get a pullback with convergence while price remains above the open, it
usually means the primary trend will resume, as it did here with the SPX
advancing from 1289 pullback to the 1306 high and close.

As I said on Friday, there
will be a continuation this week of many different agendas by the institutions
as we come to year end. Your job is to hitch a ride as the train leaves the
station. You will see more of the knife-like strategically initiated programs
like you saw in the NDX 100 at 1:35 p.m. on Friday.Â

After the sell program, the
NDX 100 immediately ran to new intraday highs.

face=”arial, helvetica”>(March Futures)
Fair Value	size=2>Buy	size=2>Sell
17.85	Â 19.20Â	Â 16.30

Pattern
Setups

Stocks today: Continue to
focus on the semis, biotechs, chosen ones and the blue-chip techs. Continuation
entries will be better after the opening and early noise is completed. This
usually means second entries. If some of these chosen ones that ran big on
Friday open above Friday’s high, you might catch some flash shorts on a reversal
of Friday’s high to the downside. If
we open up, then pull back for the contra move, you should look for setups at
the intersection of Friday’s highs and/or a .50 to .618 retracement of the last
two days’ range.

Have a good trading day.

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Year End

BUY THE FEAR, SELL THE GREED

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