Tweets
Subs exit long position in $LUV from yesterdays entry. at 12.28 or better for a 1.2% gain@ 13:24 -02/17/10
subs exit long position in $JDSU at 9.45 or better for a 1.2% gain@ 12:46 -02/17/10
Subs exit long position in $MLHR for a 1% gain from yesterdays entry.@ 12:43 -02/17/10
Tweet Ticker
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RT @alaidi: $SPX/VIX Ratio falling to 60 from 65 when this double top in ratio was shown http://bit.ly/b3SlDw . yellow squares #vix $$PX $$
1 minute
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RT @alaidi: $SPX/VIX Ratio falling to 60 from 65 when this double top in ratio was shown http://bit.ly/b3SlDw . yellow squares #vix $$PX $$
4 minutes
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$SPX/VIX Ratio falling to 60 from 65 when this double top in ratio was shown http://bit.ly/b3SlDw . yellow squares #vix $$PX $$
5 minutes
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Twitter-Ticker powered by Peter Kommt Mit. unkonventionell reisen
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Weekly Forecast
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Sunday, 15 November 2009 14:00 |
The markets closed up once again for the second week in a row and once again it was on lower volume. As much as we would like to see the market continue higher we don't see that happening at this time. If you can imagine the market trend is like a big rubber band. You can stretch it apart until you start flinching because you know it's going to snap any second. You may be able to pull harder and get it a little longer but you get a little more hesitant as it gets longer because you just know its going to break. Now, if you let out some of the tension and then pull it again you will find that you can pull it further apart as it stretches a little more each time. The tension in this market is about as tight as it can get, yes it may stretch a little more but sooner rather than later it needs to let out a little tension or it's going to snap. The low volume on up days is telling us that we are running out of new buyers to pull it higher.
We do believe that this market will be making new highs before the end of the year but first it needs to let out some tension and correct for a few days or more. If we can get a good correction we will have plenty of big funds coming in to buy the dip as they can not be in cash at year end if the market is up for the year. The market sentiment will remain bullish as long as it does not make lower lows.
The SPX hit but was not able to get above the downtrend line that was formed starting in October of 2007. Its 50% retracement line is at 1125. The DJ-30 got with in 130 points of its down trend line, and the high made this week was at the 50% retracement line.
We had another winning week, bringing our current winning streak to 23 consecutive weeks of positive returns. But this was by far our worst week since we started posting our trades here for all to see. All of our positions were stopped and we will be starting this week holding 100% cash. Our new selections are both long and short.
We keep our stops very tight so we tend to get stopped sooner on our positions when the markets are very close to tops or bottoms. As we have mentioned before the trend is your friend until it's not. As such we would like our members and visitors to keep the following in mind:
- The SPX and the NASDAQ Composite broke down through their uptrend lines two weeks ago that was the first caution sign. It was not a sell signal, it was a warning that the trend is no longer your friend until it forms again.
- The low volume on up days since then is the second warning sign.
- As traders we need to listen to what the market is telling us.
- It is very important to keep our stops in place, keeping losses small will keep you in the game and will keep your money safe and ready to catch the next trend.
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The Nasdaq Composite Index
First support is at 2140 then 2115 and 2084. Resistance is at 2180, 2200 and 2250.
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Standard and Poors SP-500 index
First support is at 1085, 1070 and 1030. Resistance is at 1100, 1105 and 1120.
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The Dow Jones Industrial Averages Index
Support is at 10100, 9997, and 9850. Resistance is at 10340 and 10430.
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The KBW Bank Index
Support is at 42.80 and 41.50 resistance is at 44.50, 45.00 and 46.00
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GOLD - via the GLD
Support is at 108.00 and 106.40 Resistance is at 111.
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