You are currently browsing the The MPT Rating weblog archives for the day 20. May 2008.
20. May 2008 by admin.
Tuesday,
As mentioned a few days ago you should have been selling over extended stocks: (DRYS) and (
The DJIA; lost near 200 points by the close, picking it self up off of its intraday lows, but the candlestick formation for the day shows this market can sell off lower before it tries to bounce… my main advice to traders and investors here is to keep a strong understanding of what the markets are doing here and exit your short-term overbought stocks, but be willing to shop around for quality oversold longs – they are out there.
The NASDAQ; gapped down at the open and closed the day off 23 points finding support on the multiple support lines we pointed out yesterday… The RSI indicator shows a break down of the up trend here and that does not bode well for longs in overbought stocks… I can’t express it enough – check your RSI indicators and your slow stochastic indicators; if you are overbought and showing a profit I recommend taking some profits here. The market is not done advancing mid-term but that does not mean you will not have short-term pullbacks that will put the hurt on those who do not enter at oversold quality entry points.
The S&P500; was off 13 points by the close, and shows an overbought slow stochastic indicator in need of a short-term pullback to release this pressure… There are still quality stocks out there, but investors must be diligent and disciplined to stay clear of those over extended troubled spots – they will sell off.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets tomorrow (short of any surprise bull or bear news) came in at (06) which is still bullish and shows “Smart Money” is still buying, but they are being selective as are we.
As always I recommend investors and traders, be smart, patient, and ever successful.
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