Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Johnny Canuck who wrote (43322)	5/18/2006 3:12:54 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67962

TradingMarkets.com The Bigger They Are, The Harder They Fall Wednesday May 17, 9:24 am ET By Dave Landry On Tuesday,the Nasdaq initially traded up but soon found its high and began to sell off. It found its low around mid-day and then began to rally. However, it found its high late in the day and then drifted lower for the remainder of the day. The S&P put in a somewhat similar performance. So what do we do? One would have expected more than an intra-day bounce from a market that is this oversold. Man, this thing is punk! What's also concerning is the fact that the S&P has been held up in part by commodity related issues. Now that these are taking a hit, one has to wonder what will stop the slide. As far as shorts, I'm starting to see setups in recently hard hit tech areas such as telecom and Internet. Just wait for entries and don't bet the farm since the market remains so oversold. A safer bet may be to look to play First Thrusts in the commodity related areas. My thinking here is twofold: 1. they can trade independently of the indices and 2. they have further to fall--the bigger they are, the harder they fall. As far as setups, the energies (and other commodities for that matter) are set up as a First Thrust. Tetra Technologies (NYSE:TTI - News), in oil service, looks like it has the potential to resume its recent slide out of a pattern I call a First Thrust. It's also a strategy I call a Reversal Gap. Email me if you need the chapters out my book that cover these (but don't tell my publisher I 'm giving this stuff away!). Best of luck with your trading on Wednesday!