Click chart to enlarge We drew a new linear regression channel on the chart of DDM, beginning at the breakout on March 10th through today. The recent weakness has brought the slope of the channel down a bit, relative to the slope it had when the rally was only 8 days old. The longer a channel, the more significant it becomes. The bottom of the channel is running parallel to the moving average, increasing the chance that other traders will pick up on it. This is a 35 minute chart for no other reason than that all 14 sessions of the market's current rally fit on the screen.
13 comments:
How any of you guys gonna play the April 8th SEC meeting on the potential uptick rule changes?
Well, this channel has been broken too, in the pre-market.
Btw what about Gary 2.0? :)
Yes, this channel has been broken, too. If this selloff continues and we go down to retest the lows, we'll be convinced that the 75dma is controlling the market. It's amazing how we turned around just at that very point...like clockwork.
Haven't had time for Gary v2.0 yet, but will get to him soon. Do you have any charts that you suggest? Larger market caps across the board this time, remember.
These big down days are how selloffs begin, like we saw on 9-29, 11-05, and 1-07. Of course it could go either way, but is there really anyone here that thinks we can possibly move higher from here as if today never happened? If we close down here (down 270 points), the odds favor another few days of selling.
On CNBC they were talking about mark to market rulings on Thursday (?) being a potential impetus to keep the rally going. Does anyone have more info on that?
I heard the hearings were starting on Tuesday 3-31-09 but may be wrong.
If good news comes out of this and when it is announced I would think banks and any financial etf's will rally and maybe push the dow past 8000.
Anon, I stand corrected, the decision on MTM is to be announced on Thursday. Watch this closely for the direction of the banks.
"Do you have any charts that you suggest? Larger market caps across the board this time, remember."
There are some good buys: AMZN, IBM, GS, PBR, RTP, FCX. :) They are strong. Btw I love to short this market, there are some really weak stocks.
Favorites: IP, DOW, BA, UTX, AXP, VNO, PSA, and some stronger GE, WFC, USB, BK. :)
and in the last few weeks EBS, LHCG, AFAM, QCOR, AVAV (based on the Weinstein book) - small-caps.
Damn i wanna by FAZ, anybody with good TA skills gimme some advice on FAZ.
Thanks for the charts, Snot. Unloading as we approached the 75 DMA helped me today. I was down only 1.3% while the market was down over 3%, so I'm only somewhat miserable instead of totally miserable today.
Longs for Gary, try WYE (health) and FXI (yeah, an ETF, but China should actually grow this year). DLTR and FDO if large enough cap for you.
Joe
This will tell you all you need to know about shorting financials.
In FAZ since last week, been buying it up around 19, and will buy more and look at it as a discount until we touch the bottom of that channel.
http://www.screencast.com/users/MarketMinotaur/folders/Jing/media/bbde3c19-5f34-44cd-98e3-e972ed94201c
The FXI tracks the Hang Seng index while the Chinese index is the Shanghai index. These are not the same (just an attention).
Btw one another long from the biotech sector: ILMN with nice trendchannel above the 200SMA. I tried to pick stock to long which has trendchannel or at least easily identifiable uptrend while they are relative strong to the market, meanwhile my shorts are seems to be very vulnerable (but they not necesseraly has trendchannel).
I would wait before loading up on FAZ. Mark to market is up for review on Thursday. The pressure is high for change so FAZ is likely to have a pullback. Of course, if no changes are brought forth, the market is heading down down down.
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