All: Well, we did get that bounce by Tuesday - but it ended
with a thud. I don't think that it is important where I
think this market is headed the next day or two, but where
it is heading over a more extended period. I see many
technicals that are breaking down such as the new highs and
new lows, smaller volume when going up, etc. Thus,
regardless of what happens near term, I look for some
additional movement to the downside before this correction
is entirely over. Again, we will have our one and two day
type of bounces which end up for the day - but we have more
work to do on the downside. The tech stocks and many on the
Dow were roaring early today, but they all turned into
paper tigers at the end. Intel, IBM, CSCO, most all of them
came off of their highs of the day big time. The McClellan
Oscillator is showing an oversold condition - but I've seen
it at a bigger minus number than it currently has now at
other times during this 6 year run.
All of my supports for Intel remain the same - and the same
for its resistance areas. The Dow early support is still
between 6500-6600 and we made a decent run toward that area
today before the markets came back at the end. So, we go
into tomorrow to see if the markets and the individual
stocks will prove to us which way they are going to go
for the short term. No higher highs tomorrow by Intel and
the rest and you will get the picture. Higher highs and
higher lows and there is some opportunity for short term
trades. Without those, forget it. I might add that a number
of stocks did well today, although selling off of their
highs - IBM with its 5 point gain was a standout. It was
basically due. Now, it will have to go beyond 154 1/4 and
then 156-157 (moving average line area) to go on up to 160
area again. Much will depend on the overall markets'
direction on what anything does in here. Good trading. Jack
Paulo: I certainly second that opinion - protect with puts. |
