Hardline, this newbie wondered how everyone knew the difference between a bullish or a bearish resistance line when your posting just the initials, thanks for the education, I obviously was using BRL interchangeably for both.
Jan, I asked if you would give me your tutoring of my readings on MO,JNJ,PG so please realize I wasn't using the proper distinction between the two type of lines.
Harline, I realize talking about the dollar breaking its 'brl' is premature. If you look at a L.T. chart on the DX/Y ( dollar vs all currencies ) going back to the high in 1985 you will see that since it's major low in 1992 it has been steadily making higher highs and higher lows. We are currently in a down mode because everyone has been anticipating the introduction of trading in the Euro. Everyone expected the Euro to be big competition for the dollar. There is just one problem,there is no Repo market so there is no liquidity for the Euro. Until they establish a Repo market the Euro will not see any serious money flowing into it. I think the market is starting to wake up to this and the dollar is rising again. On P&F the dollar has just recently given a buy signal, reflecting what I think is the realization of this flaw in the Euro. This is potentially one more higher low for the dollar.
I think you also have to be on your toes and watching a real wild card in the market - Trade Wars.. This potential trade war with Europe could be very damaging to the multinationals. When you start placing a $3 tariff on a $3 product you effectively kill all sales into the European market. If any of you have ever studied the markets one of the key causes of the 1929 crash was the instigation of trade tariffs which brought on international trade wars and killed global trade ( which wasn't as extensive as it is now ).
When I see the multinationals starting to roll over, see the problems with the Euro, see the makings of a trade war and see valuations in this sector beyond that of 1929, I start wondering if these stocks aren't telling us that we are potentially seeing more than just a rotational correction in this sector.
So when we are talking about the NYSEBP possibly heading for a bear confirmed signal I started looking for the stocks that could have a potential to get hurt. I've been in the markets since 1972 and went through 73-74 bear market and went through the inflation hell that kept stocks sideways until 1982, once you've had the holy $%)#$@+*&^% kicked out of you it teaches to drive with both hands on the wheel and both eyes wide open. I own a lot of these Multinationals and want to make sure I don't see all my profits start to disappear.
Gwolf |
