Well I have to say I am still not in the bear camp yet. As I posted to Les, I am anxiously awaiting the first large reaction to one of Don's signals. The past couple have been relatively small movements not negating but not really having much impact either. Now that he has a class one sell at the same time that MSFT is reporting earnings as well as CTXS, IBM, TLAB, LU, AMZN, EXDS, AOL, SUNW, GTW, NOK etc etc etc. This week should define our market for the next few weeks at least.
I am leaning slightly to the bearish side again in light of FLEX's reaction and the market's sudden decision to try and apply fundamental analysis of SCH earnings and drop in profit margin. Maybe the analysts ARE waking up from their slumber.
I am having a family emergency right now so I will be unable to do my charts until at least tomorrow and will be less involved with them than I planned to. I originally was looking forward to this weekend to catch up on my work but will probably be on hold. As I said yesterday, I am expecting a major move one way or the other and see mixed signals. I was happy to see MU actually follow according to plan but don't know if it will drop the other 5 or so that I feel it should. INTC still needs to capitulate more though. SCH didn't help the XBD recover that I was watching for so next week hopefully will show if the falling sector indexes are previewing the future of the market or the broken resistance lines in the NASDAQ is the way of the future.
Have to run, I will try to get the sites updated tomorrow morning but no promises.
EDIT - If you pan the index charts back, they resemble a bullish flag right now more than a bearish formation of any kind IMO and I suspect we may be forming a pattern resembling April where there was a flat pause before the second half of the rally hit. This is why I am hesitant to jump in the bear camp. Maybe a straddle on an index is the best play again. It worked well last time but with all the earnings due this week, a whip saw is a high possibility so I guess not.
Good Luck,
Lee |
