16 replies to this topic

[dcengr]

Money has to come from somewhere and go someplace...

Edited by dcengr, 02 November 2007 - 11:07 PM.

[Trend-Signals]

Money has to come from somewhere and go someplace...

$BKX at supports TL as well.

http://stockcharts.com/c-sc/sc?s=$BKX&p=D&yr=6&mn=6&dy=0&i=p28950028607&a=120071237&r=22.png

Edited by Trend-Signals, 02 November 2007 - 11:13 PM.

[raleigh]

I bot CFC today, W bottom present, imho.

[dcengr]

I'm not sure if I got my message clear... The point I'm making is that if the banks bottomed, then money will flow back from techs into banks. Currently, large SPX short vs large NDX long in futures. Likely a very popular short SPX, long NDX strategy going on. If Banks start rising, they will be forced to take profits in NDX and cover SPX (ie unwind that trade). Banks also do pretty well during a recession. Why? Even if they have subprime mess, they MAKE money. All they gotta do is throttle back on dividends a bit, unlike techs which just go out of business because they gave options grants to all their employees from their profits. Anyways, its just my thoughts, feel free to have your own thoughts or question challenge mine.

[Trend-Signals]

Let's see. SPX/DOW are relatively in syn while NDX/NAS are outperforming which is a typical pattern if we consider LT performance.

AAPL target is raised to 250

GOOG is nearing target 750

MSFT looks to be targeting near 40

EBAY and YHOO have 2005 and 2006 gaps and are current in uptrend going into EOY
even though EBAY, I need to see a confirmation beside the reversal hammer formation at
major support. Noted on EBAY with charts at this link.

http://www.traders-t...showtopic=78578

We have many tech oversold.

While it sounds good that we could see a rotation out from Tech to SPX financial, I am not sure since we have momentum going into EOY during which Tech is seasonally performing well.

Those who buy financials would likely be LT investors who look for value?

Traders would be just trading financial stocks for vst/st.

Will see.

Edited by Trend-Signals, 03 November 2007 - 12:01 AM.

[dcengr]

Ya only time will tell all...

FWIW, this is the futures position I was referring to. I think most know that NDX and tech breadth in general is very stretched atm...

And rydex flow into internet stocks is sky high.. techs in general seem a bit bloated.

[dcengr]

Contrast the tech sector vs the financial sector in Rydex funds... I think a bottom in financials are here at least. Whether that foretells a top in techs, I'm not 100% certain.

[vitaminm]

bkx current trend support 92

[Trend-Signals]

Nice charts the parabolic moves made by AAPL, GOOG, AMZN, RIMM.... BIDU and recently MSFT, that's all I can see moving up along with moderate performances by CSCO/ORCL/QCOM..... YHOO/EBAY are still working on filling 2005 and 2006 gap downs. Chips are swimming under water. It will be nice to see rotate within tech stocks, but we know about momo. Have a good weekend

[Sentient Being]

I've been watching Washington Mutual. The took another 7.5% loss today. I'm increasingly convinced that the feds are going to have to shut them down. My understanding is that if you take away the unpaid interest that they get to apply to the principal owed and book as "profit" they would have had no profit this past quarter. Amazing. Their proift consists of unpaid interest that most likely will never be paid. If the entire industry is as bad off as WM I think banks have a long fall to go.