Monday, January 5, 2009
Pullback May Be Over
Today's decline appears clearly as 3 wave pullback, which implies strongly that higher prices are coming. Of course, any pullback can extend, however, the indexes held solidly above the 50dema. Swing traders can trade a breakout above the January 2/5 highs with a target around the November high. Most intermediate term trend following systems are neutral, so intermediate terms traders may want to sit this one out. It has been a difficult rally to trade. Some quality breakouts in individual stocks are beginning to show up, but the pickings are slim. The biggest gainers are the beaten down stocks such MEA which was up 36.87% today. As far as breakouts are concerned, CSKI and MYGN had nice moves today.
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1 comment:
I wrote a certain mkt analyst's name on a piece of paper "-- was right" and ate it today. LOL
The VIX crossed the 10dma.
The main problem is the rally since Dec 1 has been so flat -- a lot of energy used up going nowhere. It's only been the last week or so that there's been any spark & that has come at the tailend.
Think we retest the Nov 21 lows (this month) then rally strongly for 2 or 3 months then resume bear mkt. Things are made much clearer by today.
Craig, have any views on TLT & Three Black Crows ?
Regards,
dave
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