Monday, July 12, 2010

Ready For A Breather

The news from Alcoa and CSX appears to be upbeat, but today's narrow range and light volume indicate that the impulse is probably complete or nearly so. A 3 to 4 day pullback would not be out of the ordinary. Interestingly, the Qs topped out today almost at the same place they did on February 19 before a 4 day pullback began. The high that day was 45.05 and today it was 45.03. Coincidence?

We also got the MACD buy signal today. I think it would be prudent to buy into a pullback at somewhat lower prices rather than go long on the open tomorrow. Hopefully, the pullback will not be severe enough to put the MACD back on a sell. The action the rest of this week should give us a good indication as to how the rest of this rally is going to go.

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