Zoned

May 16, 2002
Kevin Haggerty

NYSE
volume was about the same as
the previous day at 1.4 billion, a volume ratio of 44, which is a three-day
average of 66 which is short-term overbought, while the breadth dropped to +199.
These numbers say let price come to you. Don’t chase price.

The SPX
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$SPX.X |
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PowerRating)
hit the 1100-1106 resistance zone mentioned in previous texts and also the
50-day EMA of 1103. That was it for the advance. The SPX had a reversal-bar day
yesterday with the close in the bottom of the range, below the open, and below
the previous close. That also says caution and take intraday shorts if you get
them today.

The
(
SMH |
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PowerRating)s did
essentially the same thing. They hit the wall right at the 200-day EMA and upper
band mentioned
yesterday. The intraday high was 44.80 and gave us an inside-bar short
reversal entry below 44.63. They traded down to a 43.20 close.

We have no ego and take
what’s given, not what you think it should be. The sectors all did a fade on us
yesterday, so nothing real positive to read there. I would expect to play off
the intraday charts today and Friday due to the option expiration activity. Be
careful, as the Thursday before expiration is often game day for the program
gang.

Stocks
Today

Have a good trading day.
The next morning audio will be next Wednesday. I look forward to seeing all of
you at the seminar in California, as I will be leaving today to travel there.
Have a good day, and have a great weekend.