Padded Rooms and "Poorly Tailored" Jackets
This type of up-down-up-down-up action is what makes for a visit to the funny farm. Normally, I'd view this as Bullish consolidation, but I'm not so sure. Of course, with the Holiday upon us, we're probably in for more of the same, and we probably shouldn't read to much into any of it.
DOW: The Dow is hanging in there. The pattern does look a mite Bearish, to me, short-term.
S&P500: The S&P 500 gave a daily MACD Sell today. I'd not read too much into that, this soon.
NDX: The Nasdaq 100 Summation appears to be negative, but no other indices are confirming. This is either an anomoly or an early warning.
QQQ: The Q's still look OK, but I'm thinking that the pattern would allow for some more selling in here. We'll have to see.
HUI: Gold broke down.
GSS: Gold Star is under pressure as are the rest, but it's not a dead duck.
SMH: The Semi's look like they will pullback. I'd ignore downgrades...it's old news and likely a buying opportunity.
STEI: Stewart Enterprises is holding the break out and doing well for us.
AMCC: Applied Micro was weaker, but not too bad.
LOOK: LookSmart is, well, looking smart. More importantly, it's making Doug and the rest of us look smart, too. Nice pick.
AMGN: I'm with Doug, let's look at Amgen a bit later.
VLNC: Valence has the right look about it. I think we're headed higher, too. This one has been good to us in the past.
Summary:
This is the type of market that chops around, drives you nuts, and at the end of the day, goes nowhere. Individual isssues, however, can really play, as we are seeing. Be that as it may, I'm noting some potentially Bearish signs, such as the high ARMS index, and the outlandishly Bullish sentiment. There's certainly no assurance of a decline, but the risk is good enough that we want to keep our hedge on, for the moment.
Be Well, and Trade Smarter Than the Average Bear!
Mark, Doug, and Holly
-The ChartSmarts Team
Current Positions:
Short QQQ 200% at 38.95, cover at 38.20.
Long GSS at 4.42, stop at 4.16
Long STEI at 7.39, stop at 6.49
Long AMCC at 3.45, stop at 3.45
Long LOOK at 1.64, stop at 1.65.
Long VLNC at 3.31, stop at 2.99
Watch List:
SMH: Limit buy at 32.15, stop at 30.3
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