Thoughts on how to play this market...I have been going back to the May 2001 top for some time now. One thing that I have found is that, on the way down, gaps down really really like to be filled quickly. Not only that, it doesn't really need to show as a gap on the chart, it can just be the start of panic selling.
Naz 2001
stockcharts.com[r,a]daclynay[d20010106,20011006][p][ilp14,3,3][j8733561,y]&listNum=1
So basically, it looks like a slow grind down phase of the market....take profits early and often.....if we have three days of selling with gaps down, look for a gap fill rally.
I believe that we do get a bounce this week and that it goes to approximately 1480 on the daq. That will fill the gap and bring us back to the 200dma.
stockcharts.com[r,a]dhclynay[pb50!b200][iUb14!Lh5,5!Li14,3!Lp14,3,3]&pref=G
Then again, most everyone is expecting a rally this week.....hmmmm |
