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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (11284)	1/11/2009 10:02:16 PM
From: zigzagman	Respond to of 33421

MCD ~ Daily and Weekly Chart Analysis: I don't have time to do a Video Chart tonight, so I'll just add some text comments to these two charts... MCD is at the lower Bollinger Band, and it's had lots of support in this area since mid-December. If that support level fails, it has another one at $59.00 and then none until just above and just below $56.00 It has resistance at $63.00 and $64.00 many times. For the Bulls, it must bounce up from $60.00 this week. Bears want it to break below that level. Volume is diminishing, so that's good for Bears. Basically, it's been trapped in a trading range between $60.-64.00 since the first week of December, while it consolidates in an uptrend which is Bullish. MCD and WMT were the ONLY two stocks on the Dow30 to close in the green last year. That's pretty impressive. All six of the lower indicators on the daily chart have red arrows, so is convincingly Bearish. _______________________________________________________________ The weekly chart has fairly mixed indicators. It is still above the 15MA, the 50MA, and the middle Bollie Band, and the 50MA is still upticking. The big worry is that the 15MA will cross down through the 50MA, which is very Bearish. Last week's close was the lowest close in five weeks, but it's holding a level of support at $60.00 it's had for the past five weeks (so far). Last week's tall solid red candlestick that closed very close to the close of the week is a concern for the Bulls though. A candlestick of that type usually calls for another down week, and a somewhat smaller red candle. The Bulls do not want to see it close below $60.00 or the 15 and 50 Moving Averages, or the middle BBand... The lower indicators are a mixed bag: the RSI downticked and needs to stay above 50 for the Bulls sake. The CCI just barely downticked, and the Bulls want it to stay above the zero line. Stochastics actually moved up during a down week, and is now in Overbought territory. The MACD Histogram downticked last week, the fast line ran flat, and the slow line upticked, so the MACD is neutral. As is the ADX. The A/D line shows lots of sellers, and the Shorts like the fact that the A/D line broke below it's previous level of support. Happy Trading, zigzagman

To: John Pitera who wrote (11284)	1/11/2009 11:13:30 PM
From: Stoctrash	Respond to of 33421

We've had a nice rebound and you are right, the RUT is text book Fib stuff too. Prices need to tell us the real deal and so far they are holding up well. I don't expect that to last given the fundamental situations, but price is what matters. I think you can trade this market w/ CNN for the next few weeks too. More bombs in ME = SPY rally. Ceasefire = market falls. Just a hunch. ==================== Talked to head engineer who manages about 40 engineers here and around the World for a major Defense supplier (control systems, hydraulics, etc. ) He said they're worried, hiring freeze ..waiting on Obama. I told him not to worry...Defense biz is going to boom. Like I've been saying, screw ups over money are settled w/ force and I think what's going on in the ME right now is just a precursor.