Continuation

The bonds up, stocks down scenario continued; Friday was the first day last week that declining volume outpaced advancing volume. Even though it was quiet, it was still a minor reversal day on less thrust--narrower range than Wednesday's and Thursday's wide-range up bars. You've got to be a little careful here: Don’t get caught if we trade below Friday's low in the S&P futures or cash. Around 8:30 AM ET, things are pretty quiet; the futures are basically a push.

Target Stocks Of The Day  If they trade through your entry price, there are a few stocks to watch for continuation patterns today: Fore Systems [FORE>FORE], PSINet [PSIX>PSIX], Amgen [AMGN>AMGN] (stay with it if it trades above Friday's high), and United Technologies [UTX>UTX].

There also are some setups in basic industry stocks (watch for the elephants to come after these). There not great day trading stocks, the dynamics must be right--you should see some buyers, and some front-running of the buyers. For these to move, you have to be able to get in ahead of the size. Watch Caterpillar [CAT>CAT], John Deere [DE>DE | Quote | Chart | News | PowerRating], PPG [PPG>PPG] Dupont [DD>DD | Quote | Chart | News | PowerRating], Rohm & Haas [ROH>ROH], and W.W. Grainger [GWW>GWW].

Two speculative momentum stocks that are set up (make sure you have the proper execution): Ameritrade [AMTD>AMTD] and CMGI [CMGI>CMGI].

Program trading numbers  Buy: 10.22. Sell: 5.14. Fair Value: 7.78.

Editor's note: If you want to learn more about Kevin Haggerty's trading strategies, click on the link below to go to his new series of tutorial articles.