Reality Bites
I have been
thinking about what I wanted to write and whether I should continue
to repeat my words from my last few reports. (It is almost 3:00 p.m. as I write
this report.) I want to mention some names that are breaking out. I want to tell
you everything is going to be fine…but (heavy sigh)
I can’t. There is nothing good going on that I see.
I try to deal in facts and reality. Facts and reality are hitting the market
square in the face. Let’s review the major indices once again. because you can
never fight them when they are in ugly mode.
The Nasdaq 100 is now unsafely below
important support at 1600. Did I say support? Nah! 1600 is now resistance in my
view.
The Nasdaq is now hanging below RESISTANCE at
1930-1950.
The S&P 500 is below the mighty important 1170.
The Dow is on the ledge
just above 10,200.
Now, we get into the
question of whether we are going to revisit the lows.
Maybe, probably, could be. As an intermediate-term player, that shouldn’t
matter. What should matter is that there are hardly any valid setups, there is
no upside momentum and most importantly…a ton of breakdowns.
If you need to go long, my best advice is to check out the movie “The
Perfect Storm.” You will understand after watching.
Lastly, I urge everyone to get the book “Extraordinary Popular Delusions and
the Madness of Crowds.” It was written by Charles Mackey. It will give you
a great insight as to what happened with the Internet bubble. Nothing like
furthering your education.