Daytraders should focus on commodity and semiconductor sectors

Kevin Haggerty is a full-time professional trader who was head of trading for Fidelity Capital Markets for seven years. Would you like Kevin to alert you of opportunities in stocks, the SPYs, QQQQs (and more) for the next day's trading? Click here for a free one-week trial to Kevin Haggerty's Professional Trading Service or call 888-484-8220 ext. 1. 

The SPX was flat on Friday at 1311.28 and 1311.45 close on Thursday, and has yet to close above the initial Wave 5 price zone.  The Dow was +4 poinots to 11,347, while the QQQQ's were -1.2% due in part to the semiconductors with the SMH -2.2% following three straight up days at +5.7%.  It was options expirations Friday.  Intel failed to get it done after the hype, closing at $19.06, down from $20 intraday high.

The major indexes made bull cycle highs which were unconfirmed by most of the breadth indicators.  Fewer stocks are leading the advance, and this is a common late-stage market characteristic.  The commodity sectors were the leaders again last week with the OIH +7.2% and XAU +7%.  The brokers remain extended and were +3.9%. 

Day traders continue to get the best opportunities in the commodity and semiconductor sectors where the intraday volatility (travel range) is excellent.  The herd continues to stampede the energy stocks, with the OIH now about 25% above its 200 day EMA and +25 % in price in just 30 days.  This angle of advance cannot be sustained, so it is day trading only at these levels.

April is a plus month for the generals so far, and the bias for them to mark prices, or at a minimum, hold, during this last trading week of April might be hard to do with the current hype on the 15-20% increase in price at gas at the pump and the escalating Iran noise.  This week includes a key time zone, so prices are marked up.  The bias is on the short side into the next time zone, which is mid-May.

Have a good trading day.

Kevin Haggerty