Some Constructive Action
I was going to put out my quarterly
review today but decided to wait until Monday.
The markets have acted constructively all week. I have to tell you I am still
not excited and feel this is just a good bounce off of a huge bungee jump. But I
will not let my feelings be my guide. If I do, I will only miss out if this
market decides to get some legs. So, my next move is to see if there is any
leadership. There actually is. But first let’s take a look at the major indices.
Resistance on the Dow is up around 9000. I did not think it would try to
get there this quick. So far, this would actually be a normal retracement.
The S&P 500 has resistance around the 1070 area. It is trying but not quite
there yet.
The Nasdaq and Nasdaq 100 continue to lag and lag badly. I am not holding out
much hope as a bunch of important Technology names have fallen into the single
digit column. Simply put, the technical condition of TECH remains horrid.
Sentiment has played a large part in this latest move as many indicators have
reached all time bearish numbers. It is amazing how a market can rally when
sentiment numbers indicate panic selling. But like I said in my
last report, until the market physically bottoms, sentiment remains
secondary.
For the first time in quite a while, I can mention a few breakouts. Please keep
in mind how many failures there have been over the previous months. Until we can
say that the market has a clear direction and don’t have to look over our
shoulders, I would keep playing it close to the vest.
(
ITRI |
Quote |
Chart |
News |
PowerRating) moved out very quickly today on heavy volume.
(
SANG |
Quote |
Chart |
News |
PowerRating) also moved out. Not showing the greatest fundamentals to me, but
strong technicals.
(
PBG |
Quote |
Chart |
News |
PowerRating) has been setting up well in a long base. It is now tightening up at
the highs. Maybe a watch candidate for a breakout on volume.
Whatever you do, I would keep close stops on everything in this market. More
importantly… I hope to see everyone in Vegas
where you will see me take Magic Johnson to the hoop and lay the smackdown on
him. (‘Course, maybe it’s lines like that that got me struck by lightning!)
P.S. Only one week until TradingMarkets2001. I
am looking forward to meeting you there and teaching you six of the most
important ingredients for monstrous breakouts, both to the long and short
side.