Rudy, check out the recent history of the Nasdaq composite -- the last few years, at least. I think that whenever it violates its 50 day moving average, it soon makes a visit to (or slightly below) the 200 day moving average, where it finds support for its next leg up. The Nasdaq has recently moved below its 50 day EMA last week. The 200 day EMA is about 1715, about 60 points south of here.
Thanks to my lesson learned on APM, I went to 80+% cash a couple weeks ago. I sold off most of my oil service stocks, preserving profits, when it became clear that crude was in a downward channel. I wish I had sold it all, but that's another lesson. I've been playing with some shorts on the internet stocks, but, unfortunately, I've been content to scalp a couple of points here and there, instead of letting the shorts ride.
I'm more interested, though, in picking some entry points for long positions, particularly in some of the big name techs, and again in the oil service group. I'll be watching those charts. |
