60 Minutes

• August 13, 2002
• Derrick Hobbs

No I’m not talking about the CBS television program. But
they sure have some good ones. Survivor: Thailand is coming soon. The
participants are being announced this week. Then there’s the Late Show…you just
gotta be a fan of David Letterman. The one show I could probably do without is
Big Brother. Anyway back to “60 Minutes”.

 

At the end of today’s trading session we had a very hard
sell off.  So, what do we make of this sell off ?  The talking heads are blaming
it on the Fed and frankly there was just a lot of noise.  I truly believe in the
saying “Trade what you see and not what you hear”. Well, here is what I see from
the Fibonacci perspective.

 

1)     
The immediate trend on most 60 minute charts are up

2)     
Today’s pullback is actually healthy

3)     
Below are a number of charts of ETFs and Stocks on a 60 minute time frame
that illustrate the fact that the immediate trend is up

a.     
I have also identified key Fibonacci price support zones that need to be
held for this decline to continue to be labeled “healthy”.

b.     
If these price support zones on this time frame start to break down then
we will likely be in for a test of the lows made in July on most if not all of
these charts.