Stocks, charts, risk management & coffee

Weighing the Evidence

iwm

I’ve noticed anecdotally that the big caps seem to be outperforming the small caps stocks. It shows up in the charts as well. IWM is sporting a double top and has already broken its 50-day.

udn_007

The dollar continues its rise (and UDN its decline) today confirming yesterday’s breakdown on UDN.

I already posted earlier that transportation (IYT) is breaking down.

For me, this all adds up to “not buying this dip.” I also added some IYT short early this morning. But, I’ll continue to take things slow ahead of the GDP number tomorrow. I would rather get in on a downward move a little late than turn the ship to fast into a fakeout move.

 

SNDA_001

Also, SNDA is looking like a good short on a pullback to horizontal resistance at $45. The 50-day can then be used as a stop zone. You can start to tell that this selloff looks like the real deal as more setups like SNDA show up.

§767 · October 28, 2009 · SNDA · · [Print]
  • TWM chart, profit taking. Where are the bottom fishers?
  • LONG APOL 59.7
    LONG SOHU 55.8
    LONG BBH 92.58
  • Zee, I see some support bounces on those names but could you provide an explanation of why those look good to you?
  • Guest
    Did you notice the $XII and $SPX are at major support points established last year? The XII is right at the election day highs from November. The XII is a major index that no one mentions. Its the top 75 most widely held stocks that if put together make up the majority of the market.

    I also think we are at a bounce point for gold and oil. I was going to step out, but gearing up now...
  • The market is actually predictable today. I just knew that the 50 day would act as a magnet before GDP tomorrow (nothing genius about that). I made some minor moves today which so far look very good (IYT short, dumping AYO, DBB, and GDX early this morning); however, I still think there is a good probability of a bounce tomorrow as I don't think the 50 day will be taken out by the close of trading today (on SPX and XII).

    Note that GLD is holding up well. Only down 1%. Only the miners are getting killed. I'm guessing that this one will also likely test the 50 day.

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