...plug in WCOM. I am noticing almost identical chart patterns forming, compared to this time last year, late Nov-early Dec. A year ago WCOM showed support around $15, dipped to the $14's, and ran to $18+, before the tax-loss selling grabbed it drove it down to the $13's. In January, it proceed to run up to the $23-24 range. Very impressive.
Note & compare, especially, the bullish divergences the last month or two, on the DMIs, and the year-over-year similarity on the break-away of a few oscillators, like RSI, CCI, and any group of Stochs.
Not sure how the fundmentals compare from last year, but It'll certainly be a very interesting one to watch.
ANother reminder, too. Make the best of this bear-market rally, but be very leery of a big December sell-off, going into a triple witch on 21 December, and not only another big year of tax-loss selling, but moreso the influence of that perception. If things go bearish in DEcember, don't fight it. Sit on the sidelines and give the money to AMZN for gifts instead of the bears going short.
Also, if you remember, this past January, we were all crowing how we could have made a years worth (2-3 years worth?) of gains 30-40+%, by buying in the last week of the year.
Notably, look at this past January, for CSCO 32 to 45, DELL 17 to 30, DIS 26 to 35, EMC 60 to 80, FIBR 10 to 30, GLW 50 to 80, INTC 30 to 38, JNPR 100 to 140, KM 5 to 9, LU 13 to 22, MSFT 43 to 65, NMGC 2.75 to 4.25, SQNM 14 to 22, SNDK 30 to 50, SSTI 10 to 20, T 16 to 25, VSAT 14 to 20, YHOO 20 to 40.
Man, I didn't hink the list would be this impressive, nor the gains so pronounced. Please, please take a look at some of these bahaviors. Mahaka, you were wondering if it was worthwhile. You need to fire up your charts, amidst all the other crap your going through, to look at this stuff. If the selloff develops in December, I would raise my confidence in some great bounces in January. Stick to the quality names. Check out the fundies. Make sure the underlying chart trends reamain bullish. Buy with confidence the last week of December.
If we're really getting smarter, we'll respect and watch the behavior the next 4 weeks. The current run since 17 Sep, could play perfectly into a profit taking scenario by the end of the year without compromising prices below their 50 SMAs, which most decent stocks have crossed up through. Watch QQQ & SPY to see if they hold at or above 34 & 106, respectively. We have...what...10 rate cuts which are gonna kick in eventually, some gorillas pronouncing bottoms, etc.
Be smart. |
