ChartSmarts.com
Is it a Ballroom or a Boardroom?
The expiration Cha-Cha continues. A little bit down and then a little bit up, but ending back in about the same place. Cha-Cha-Cha! Not much dramatic action, but at least our holdings are doing well. As we near options expiration, we can probably expect to see on sharp move. There's a decent chance that it will be down.
DOW: The Dow is going to do SOMETHING soon.
S&P500: The S&P is grinding higher and that is like the death of 1000 cuts to stubborn Bears.
NDX: The Nasdaq 100 is the weak sister, but the Composite--the broader index-- is doing better. I have a feeling that we'll see some upside action in the NDX shortly.
QQQQ: The Q's may have a play to the upside if we can break this down trend.
HUI: This index sure looks strong. I'm hoping we get a pullback of some magnitude--to like 180-ish-- to set up some good entries.
BKX: The Bankers have a funny, but Bullish look to them. Break them up and we could get a nice rally out of this market.
XBD: I don't want to get too Bearish on the Brokers when they don't go down after a break.
DJT: I'm just not very interested in Buying the Transports just yet.
SMH: The Semi's have been weak and are probably behind the NDX weakness. I doubt that they'll kill these stocks without at least one more rally attempt.
TTH: The Telecoms are right back inside that pattern. No punch.
NSTK: Nastech is grinding higher and paused at our earlier target. This could get crazy in here to the upside, but risk is rising.
LU: Lucent is going our way and looks pretty good.
WPI: Watson Pharm has moved up enough to snug our stop. This is just good risk management.
COF: Capital One is still weak and as such we are able to snug our stop. This is important as this one could break a down flag and rally smartly if it doesn't fall apart.
KMG: We're in Kerr Mcgee and our stop is close. So far, so good.
PAL: I think we have to pass on the N. Am. Palladium for now.
DCIA: I'm thinking that Dialysis Corp of America could be a dandy short if we can get in higher to reduce our risk. I think that the rally looks corrective.
Summary:
The trend remains up on the major indices and with the Russell 2000 making new highs for this move, we can generally expect higher prices, even though we may be in for a little correction ahead of options expiration.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
Current Positions:
Long 50% NSTK at 10.21, move stop to 12.55. Target is 14.75
Long LU at 2.85. move stop to 2.83
Long WPI at 30.50, move stop to 30.50
Short COF at 75.83, move stop to 76.32
Long KMG at 73.63, stop at 72.48
