Friday, April 24, 2009

Positive But Not Solid Advance

Although the markets were higher today, the volume was average to below average and not convincing. I would have liked to see a more powerful follow-through. As it stands, the rally from Tuesday's low can still be counted as 3 waves up which could mean a flat or expanded flat correction with an expectation that the low of April 20/21 will be retested early next week. The Qs are now at resistance at the 200dema. The 200dema is not strong resistance for the Qs, as it frequently pushes right through that level in either direction, so we will just have to wait and see how the market behaves on Monday.

One thing seems to be clear to me with each passing day: the rally from March 9 is not over. JNPR staged a powerful breakout above its downtrend line today. That is not an indication of a market ready to roll over. HANS broke out strongly yesterday as well. AMGN rallied after a poor earnings report. I shorted AMGN(half-position) on Monday at 46.00 with a stop at 51.00. I thought that it would fall apart today after the action last night. If it continues higher Monday, I may reverse and go half long. This is bull market (rally) type behavior.

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