How To Stay Ahead Of The Game
Let’s continue to interpret the day-to-day action to get the clues we need to stay ahead of this spastic game.
Pay Attention To These Changes
It is vital you pay attention and stay ahead of all the
whipsawing in and out of sectors. Here is what I
am seeing:
Look At The Action On These Past Leaders
I
want you to go slow here….especially in the hottest areas
of the last few months. They provide a great reward when
things are going right. BUT things eventually change. Those
caught napping will pay a stiff penalty. I would rather thi
The Positives Vs. The Negatives, Plus, What Insiders Are Doing
In the recent past, the market has been strong coming off of a
holiday. In any case, I would rather see stocks do more work consolidating and
then breaking out of new bases, before getting real excited again
Here’s What Market Internals Are Telling Me Now
If the market does decide to rally off of this recent correction, I do believe that any rally will not have a lot of power accompanying it as the internals are telling me the market is just not ready for it.
Why The Next Few Days Will Be Telling
I must say this this time
feels a little different…meaning play the TECHS, INTERNETS,
BIOTECHS, WIRELESS, TELCOM…everything that HAD been
working…on the light side. In fact, I believe many names
now look shortable in these area
A Prime Indicator Of Market Direction
Brokers were hammered on Friday…on heavy volume. This
bears watching as BROK
No One Has Learned This Lesson
Most stocks continue to have good charts. I
would guess that 7-8 out of 10 stocks fit that bill. Continue
to buy the breakouts as they continue to work well.
This Remains A Great Indicator
If there is anything you need
to watch to tell you the rally is over, it’s the 50-day
average…especially for the SEMICONDUCTORS. This group
remains a great indicator for the market.
Some Important Things Have Happened
With Tuesday’s action, I would buy the names that have just broken out…or on pullbacks towards their pivots. Of course, just in case, keep your normal stops.
Here Are Some Important Levels To Watch
The SOX held its
50-day average on Friday at 450. That number should be
watched closely. The S&P 500 held right at support at
1020…which by no coincidence was its 50-day average. The
Dow held its 50 day at about 9520…and the Russell 2000 is
sitting on its 50-day average right here at about 506. A
closing break of these levels will lead to l
It’s Time To Play Defense
If you take a step back, the S&P and DOW have gone nowhere in
over four months. The fireworks were in the small-mid caps.
It is time to play defense. BUT what I believe does not
matter because we will continue to play things on a