I was looking at these charts BKX break of 902 has always been a point of concrn for me however 892 is actually a support, also IIX and DOT can be interpreted as sititng on supports a very interesting observation is highlighted here..
From : monishadas
May 6 1999 8:14PM
Re : Double bottoms
See the index sitting at the second bottom, 50 day ema.
Seems as if the Dow and Russell are headed one way and
the Naz, S&P and Internet index the other. I know most
here see double tops.
No good friday ahead unfortunately. Monday on we could
get a reprieve if the double bottom stops at the 50 day. If
it gets taken out we have a poor summer coming up.
This observation relates to the following chart...
clearstation.com.
I see that financials geting weaker indicates that the market is getting real worried about rising inflation, although nothing is suggestive of that but the idea comes from 'death of deflation' theory. The guys who wanted to see markets killed by over capacity Asean contagion Russian default now have a new tool as ASEA rallies and AG thinks that threat of 'global ice age' is eliminated. I think they are getting it all wrong, Europeans are seeing a weak growth, we have nothing in numbers to suggest that inflation is a problem but we do trading on sentiment and ours is a daily job, imagine getting in at 595 and getting out at 635 ish area on DOT within one close to another, in this kind of strict range trading I would like to take advantage of any move down, and I am fully prepared, I know that fundmentals do not warrant such move but market at 1342 on SPm can provide lucrative returns to an investor who keep his bias out, it is one of those ocassions when long term holder in me would insist on continued story but the trader in me that has overtaken the long term investor looks at market every day and feel that this needs to be traded within supports and resistances unless 625 on DOT 907 on BKX and 2504 on Comp are taken out on decisive basis I will maintain my short term long put view.. |
