From Donald Sew:
OCT 4 INDEX UPDATE
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Short-term technical readings:
DOW - pending CLASS 1 SELL
SPX - pending CLASS 1 SELL, DRAGONFLY DOJI
OEX - pending CLASS 1 SELL, INVERTED HAMMER
NAZ - overbought region, imperfect DRAGONFLY DOJI, SHOOTING STAR
NDX - overbought region, imperfect DRAGONFLY DOJI, SHOOTING STAR
VIX - lower midrange/borderline oversold
NAZ NET NEW HIGHs-LOWs = negative 46
No confirmation of the possible NEGATED CLASS 1 SIGNALS. With the DOW/SPX/OEX giving up all of their intraday gains and forming DRAGONFLY DOJI/INVERTED HAMMER, it appears that some sort of a pullback may have started today.
The NAZ/NDX formed SHOOTING STARs, which is a 2-DAY reversal pattern and only moderately reliable. However, if the NAZ/NDX gaps down at tomorrows open, and does not rally intraday, that would form an EVENING STAR which has high reliability for a downward reversal.
The NAZ NET NEW HIGHs-LOWs improved again slightly. Not bad/Not great, just so-so.
One possible negative for the NAZ/NDX, mentioned by Justa, was the weakness in QCOM. QCOM did set a slight LOWER LOW on both a intraday and closing basis. QCOM is the 3rd largest component of the NDX at 4.82%, so if QCOM continues to decline, that could weaken the NAZ/NDX.
dynamic.nasdaq.com
In my personal mutual fund account, I am now only partially hedged with a downside bias (about 70/30). In our website account, we closed a UOPIX(long-NDX) position and opened a small USPIX(short-NDX) position to create an even hedge. Still holding my QQQ JAN 04 25 LEAPS, but did attempt to sell calls today but didnt get my price - that may become a boo-boo. |
