Monday, November 24, 2008

Rally Underway

Today's rally in the Dow completed 5 waves up from Friday's low on the intraday charts indicating that we should see some follow-through after a pullback. However, I do not see 5 waves up in the Qs and we did not get a confirmed macd buy signal today so caution is advised. The quality of the pullback from today's high may provide some insight. At this point I think it is too early to declare that last Friday's low was the low of wave (3). I still think there is a possibility that we could see a retest after Thanksgiving.

One piece of evidence that supports that the low is in is the breakdown in the QQV and the VIX today. However, it is possible that we could see a lower low even as the volatility declines.

I will continue to look for long opportunities in individual stocks as we move into December.

Of interest: EBS, LHCG, PETS, DV, CEPH.

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