The Worden Report (Tuesday, November 30, 2004)
EDITOR'S NOTE: Starting tomorrow,
the symbol for QQQ will change to QQQQ.
Down Before Up
No changes in the Assumptions Table today, but I suspect the Short-Term Trend will change to the downside for all three of the averages before we see any more new highs.
Yesterday's breadth was mixed with a negative bias. Today, we have purely negative breadth. Not a one of the sectors I watch came up with a predominance of advances.
There are a lot of stocks that have broken out of down channels, climbed precipitously, and have now turned down, possibly to kiss the channel goodbye. In many cases these present short-term short-sale opportunities, but for the most part I have passed them by because they do not offer enough potential to justify the risk. In such cases, the better strategy is to let them come down, then buy them.-DW
ASSUMPTIONS
(NOTE: As of November 19, 2004, we switched from 3-day charts to Daily charts as the basis for Trend Assumptions. We'll stay with this as long as only three trends are apparent. If we see four, we'll go back to 3-day charts.)
Primary Trend: UP
Intermediate Trend: UP
Minor Trend: MIXED
Dow DOWN SP-500 and NDX-X UP |
