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

To: Johnny Canuck who wrote (40908)	4/1/2004 10:53:59 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70492

April 2, 2004 On Thursday, the Nasdaq rallied in early trading, pulled back deeply around mid-day, and then traded back and forth for the remainder of the day. Although it wasn't able to make it back to new intra-day highs, it still managed to close fairly well and tack on an impressive 20+ points. This action puts it right at its 50-day moving average. The S&P put in a similar performance. It too is now right at its 50-day moving average. So what do we do? Recent sell signals (OSS and TRIN Reversal) combined with an even more overbought situation suggests that the indices remain due to correct. Therefore, I still believe that buying at this juncture is not prudent. True, overbought can always become even more overbought. However, there's no need to buy when the odds are stacked against you. Therefore, continue to focus on the short side, but due to recent strength, make sure you wait for confirmation in the indices, representative sectors, and the stock itself. At the least, make sure you wait for entries. Now that I've put my thoughts down, it really doesn't matter how I feel about the market for Friday. It will likely be held hostage by the most highly anticipated Jobs Report (in my recent memory) due to be released in the A.M. So, exercise a little caution. And, if the Jobs Report swings the market in your favor, make sure you "let 'em have it" (take some profits off the table). Looking to potential setups, for the aggressive, Arrhythmia Research Technology (HRT), mentioned Wednesday night, looks poised to continue its slide out of a pullback from lows. Best of luck with your trading on Friday! tradingmarkets.com