Another Day In Paradise
Just another day in paradise. The
Nasdaq is definitely hanging in there today…but
after a 67% drop…hanging in there just doesn’t cut the mustard.
I suspect the major indices will show support at the
March/April lows. Whether it
holds or not is another story. Regardless of what you hear…and a lot of it is
junk, there have been too many
breakdowns for this market to turn the way the masses want. I charted
about 2000 stocks today, and I am just amazed
at the number of names that have broken
support. Guess what happens next? A possible bounce. Hey, it has to
happen somewhere. But rallies will run into a
wall as they approach resistance.
And it is not just TECHNOLOGY anymore. Did anyone check
out the charts of
(
LOW |
Quote |
Chart |
News |
PowerRating) and
(
HD |
Quote |
Chart |
News |
PowerRating) today? LOW will now run into cement around $34-35 and HD around
$44. Now multiply by a couple of hundred names
that look the same and you don’t have
much upside.
So what to do? The same I have been doing. Read a lot of
books on Technical Analysis,
find charts of the start of the ’82 and ’91 bull markets and wait it
out. Capital preservation remains key. Ye who
saves a dollar, has a dollar to invest
when the turn comes. I just know I wouldn’t be holding my breath at
this point. I haven’t seen anything that looks
like a bottom yet.
HAVE A GREAT WEEKEND!
Gary