The MARKET:
JIM: I am ready to "take profits" as it seems the "market" is turning to the negative side.
Of course the selling after the expected "news" on the Fed's 50 points cut was no surprise, but looking at some of the charts of the DOW, NDX etc. it seems there is a good amount of overhead resistance and will probably retest some of the "support" levels.
Take the DOW for instance,it has a good amount of resistance at the 11,000 level from the intra-day Hs on Oct.31,Nov.1,Nov.6,7&8 and Jan.3&4. As you may recall the Oct.18 L was 9654 which is about the level it found support on the 1st and 2nd weeks in March. I guess we will have AG with more "interest cuts" before it can get there again.
The NASDAQ has "recovered" much less than the DOW and the NASDAQ 100 had an intra-day triple-top yesterday at the 2715 level. It seems it is going to test the Jan.26 L at 2526 and I hope it will not go back to the early Jan.Ls in the 2080 to 2100 levels.
I still remain "concerned" about the California energy crisis as it doesn't seems is going to have a prompt solution and it may get worse as the Summer approaches.It may have some extra effect on the "slowing economy".
At any rate, those are some of the reasons I am using to try to rationalize my decision of "taking profits", especially since January was a good month and is now coming to an end <g>
Take a pick at some of those charts and see if you come to a different conclusion.
stockcharts.com[l,a]dallyymy[df][pd20,2!c20][vc60][iub14]
stockcharts.com[l,a]dallyymy[df][pd20,2!c20][vc60][iub14!lg!lf]
stockcharts.com[l,a]dallyymy[df][pd20,2!c20][vc60]
stockcharts.com[l,a]dallyymy[df][pd20,2!c20][vc60][ilb14]
RAGL
Bernard |
