charts/trading Long term charts still do not look as bad as one might guess,and there are some technical positives, bop and macd look ok, stochastics still heading up with room to run. Money stream and tsv still technically positively divergent. Many stocks have room to head up before hitting downward trendline or even the ma (but some are close) All this makes me a bit fearful or shorting too early on Monday.
On the negative, five day line charts stink of head and shoulders with some, but not much, downside in a number of issues. We know several dow stocks gapped down and who knows where they go, but does not look good. Downward trendline still well intact. Firday's candle sticks look like we hit a wall and the rally is failing.
Market had a normal reaction to some ok economic news and then puked pretty good for no real reason. This afternoon weakness not a good sign.
Monday, not sure where we go. I could see a little more sell off early on, hit some support and a good bounce. Afternoon up in the air and if they still have portfolio weightings or window dressing to do could be really indecisive. However off the top of my head these afternoon's turn into non events and it's been a slow selloff. This market feels so sick though support could easily go bye bye. The best trade of the day would be made going long at support, if it bounces. I suspect may be very hard to figure out if this is a make or break. I suspect right now it does bounce and I may try getting long, but morning news would help influence that choice. May get short at close long term(late October), but will not know till the close. Already see my usual dilema here. If market is up, sets up charts to look very good. If market down, then will appear oversold, and things will be at long term support. Of course this whole situation just keeps repeating itself on the way down and has stopped me from being aggressive in shorting and passing up profits. This time support is the double bottom type, which can be deadly to short.
So playing it by ear, which I have been doing a lot lately and making a few bucks. The real choices for me are getting long if we go down to good support, or getting short late. No clue now unless Falck tells me what to do. |
