INDEX UPDATE
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There are no CLASS 1 BUYS. I have to correct my previous note that there would be CLASS 1 BUYS in the HiTech area which I was incorrect.
The HiTech sector is in the oversold but still not in the CLASS 1 category.
Yesterday, during the intraday I had calculated CLASS 1 BUYS, but as advised previously my charts do not get updated until after the close.
I had used the incorrect starting point in my actual calculation which thru everything off. My preliminary calculations for the CLASS 1 BUYS were wrong.
What that means is that the HiTechs can go lower for this immediate cycle. The Non-HiTechs are still in the mid-range of the technicals so of course they could drop more easily.
Per yesterday's data, the short-term technicals are low but it could still drop more. The one bright indicator is tht the Candlestick had hammers/semi-hammers which is one reversal signal, but please keep in mind that we are still above the short-term technical bottoms. In other words I am getting mixed readings as to whether the Hi-techs will drop further, but overall the short-term bias is still to the downside.
Heres the first signal of bad news. As all those who have followed my posts, I try to identify technical signals of market direction. Yesterday was the first signal that we may be topping out. Many of the HiTech indexes established lower lows IE: SOX, NDX, XCI, ETC.
Please keep in mind that this is the very first technical signal I received that was substantial. It does require confirmation. When the market pops up the key then would be to watch if we can set higher highs, if the next peak is lower than the previous peak, it would be one more confirmation that we are topping out.
I do not want everyone to panic, but please take stronger caution now.
It will require futher confirmation and the above observation of topping out is NOT CONCRETE. Remember, I only saw the first signal which requires further confirmation.
OSX & XOI - I currently have Jan calls. In light of what I previously indicated, I am now conteplating on changing my position. Originally I had felt comfortable to hold onto these calls, now the comfortability level is decreasing. I did tell some yesterday that I will continue to hold but after seeing the complete data this morning, I may be changing my position.
I need to repeat myself, for those who have had contact with me on ICQ and here - my CLASS 1 BUY comments were premature and wrong and I apologise for the error.
Seeya
Donald |
