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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36201)	2/20/2002 10:27:24 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70070

[madtrader] Tue Feb 19, 9:08pm PST MWD MER GS LEH RJF C Brokers are breaking down bad. Not a good omen if you believe brokers performance is a leading indicator for the market. Of course, JPM is by far the worst looking chart of them all. The rest will have to retest their September lows at least. none. [madtrader] Tue Feb 19, 8:50pm PST KBH DRI BZH TOL RYL The homebuilding group has been one of the best, if not the best performing group since the September lows. Funny that the Chief Economic for CNBC asked a question she answered herself today. Is the housing market the next bubble to burst? She suggested that due to the supply constraints that compares very favorably to past booms, she doesn't believe this is the next shoe to drop. I have no idea if we are in a bubble or not, since I live near one of the bubble areas of the country, Seattle. Despite the fact Washington has one of the highest unemployment rate in the nation. Anyhow, these once highflying housing stocks are showing signs of trouble. The negative divergences I like to spot so much, has unfortunately surfaced on these names. These stocks, without exception have shown negative MACD divergence recently. With the market in turmoil, I can't see people not wanting to take their profits for now. KBH appears to have the most problems. It is showing a possible head'n shoulder formation as well. I believe these names are prime short candidates.