The Big IF
On a moment-by-moment basis, you have to go with
what the market actually gives you, rather than what your hopes say.
If you’ll take a look at my weekly
chart of the Nasdaq from Monday, you’ll see that the we closed today at
the bottom of the range I extended from July 1999.Â
While the news media is fixated on the Naz making a new low for the year today, I
see the critical level as being 2500–which has not been decisively penetrated
yet. So that’s where we are. Let’s see where we go tomorrow.
In the meantime, let’s get our ducks lined up.
I give you this chart of IDEC Pharmaceuticals
(
IDPH |
Quote |
Chart |
News |
PowerRating) to
show you a situation which might turn favorable, IF the market bounces into the
end of the year and supports stocks like IDPH, which are upwardly biased. And
that’s a big IF.
IDPH has pulled back to a four-week trendline and its 50%
retracement (Dec. lows – Dec. highs). This is also near its lows of the past
week. The caveat is that Tuesday’s plunge occurred on heavy volume, indicating
some element of panic setting in.
Still this is one for the watch list. I’ll be watching to see if
the support holds.
Till Wednesday,