ChartSmarts for Tuesday 4/6/4
Started by
TTHQ Staff
, Apr 06 2004 06:05 PM
No replies to this topic
#1
Posted 06 April 2004 - 06:05 PM
Surprising Strength
I have advised against Bearishness for some time now, but I've been open to the prospect of a little corrective selling.
That we haven't gotten it is worrisome. So far, I'm only seeing tiny hints of deeper weakness, so when we get a pullback, I doubt that it will exceed 4% and probably less than that. Should things change, however, I'll be flexible.
DOW: The Dow is likely to run into trouble as we hit that overhead.
S&P500: The S&P hasn't had an hourly buy in days. This is hard to buy.
NDX: The Nasdaq is amazingly strong. I'm flummoxed at the strength, even though one could expect a big rally off the 200 day.
QQQ: I guess we CAN hit that 37.90 target!
HUI: The HUI is weak as the Dollar is strong.
DROOY: I'm honked off with that Durban Deep, but as I think about it, I think we probably want to be out.
EXLT: I'm hoping the Exult will explode for us.
ILA: Go Aquila!
Q: I see energy building in the Qwest, too.
SPN: Pass on the Superior. Too weak.
MCRL: The Micrel is playing OK for us. Let's take another profit, if we can.
NVTL: I've liked this Novatel for a while. I wish we already owned it.
CMTL: Comtel still looks good, so let's try it again.
Summary:
This market is strong. We are probably going to pullback but it's not a market to do much serious shorting. Don't fight the trend. Our ideas are playing out nicely, so let's ignore any potential pullback and stay focused on our ideas.
They're playing out nicely for us.
Longer term, I'm worried about the deteriorating Breadth, but I think we're reasonably safe on the long side until mid month.
Be Well, and Trade Smarter Than the Average Bear!
Mark, Doug, and Holly
-The ChartSmarts Team
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