You are currently browsing the The MPT Rating weblog archives for July, 2008.
31. July 2008 by admin.
Thursday,
The
The DJIA bearishly engulfed yesterday’s gains and sold off more than 205 points by the close… but sell volume was still rather well contained. At this time I am looking for some short-term overbought conditions to be alleviated, followed by another attempt to rebound after or just before the next
The NASDAQ, closing down only 4 points for the day is looking very bad as of today’s chart… we have another inverted hammer candlestick formation today, and this one is showing substantial sell volume. The slow stochastic indicator is well into overbought territory confirming the sell signal, and being this early in the start of the new uptrend line we are watching, I would not look for the trend to hold when tested.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (05); this reading is supposed to tell us there was buying in this market, but I am not convinced this is accurate, and even if it were it is very low… I think it wisest to trade small here and let the market clarify the situation. Today’s activity could have been as much of a pullback after two strong days of rally, as well as a result of the bad economic news we saw today… In this case it is best to return to the strict technical rules we follow to ensure we don’t get caught with our pants down. In other words – if it is overbought, get out of it, and if it is not the perfect buy opportunity, you had better pass it up or place a tight stop loss limit on it.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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30. July 2008 by admin.
Wednesday,
The markets were filled with bullish news today as the
The DJIA gained 186 points today continuing to reverse or fill the pullback started after the break out of the down trend noted on the attached chart. I would look for us to see a break out of the 11,698 peak and then press the upper BB lines higher with potential to test 12,400 before this run comes into top heavy analysis… This is forward looking of course as we could consolidate at any time pre
The NASDAQ gained 10 points for the day forming a clear consolidation signal with a Doji candlestick now clearly marked on the chart… In my opinion this rally is not over and bulls need to be buying up quality.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (01) which tells us the support level for this market has just been raised by the bulls and we are now sitting on support and this is where you need to be a buyer of quality stocks currently oversold in this market.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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29. July 2008 by admin.
Tuesday,
The market corrects yesterday’s sell-off… We warned of this yesterday – low volume sell offs are as trustworthy as low volume advances. Congrats to our members who heeded our buy recommendation yesterday! That one was too easy J
The DJIA gained 266 points today; note this is greater than the 239 points lost yesterday – can someone say bullish engulfing signal? Today’s volume on the DJIA is also greater than yesterday’s sell off and that is an important bit of information. A quick study of the price chart shows we now have two ascending low points on the chart which represents the potential start of a new up-trend in the market… view chart to see the trend line in question. We may have a surprise summer rally on our hands!
The NASDAQ gained 55 points for the day, also a bullish engulfing signal of yesterday’s activity as well as a continuation candlestick pattern which is great for those stocks aided by the NASDAQ activity… like what we are holding in the
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (03) which tells us very little smart money went into today’s rally… this is not as telling as one might hope as we have several factors to consider here and therefore we must defer to the technical analysis of the charts to hold until further notice… It is possible that we are about to see a summer rally from now till Christmas which will catch a lot of traders off guard as summer is typically not an active trading session – this in and of itself could explain the low MPT Rating but we’ll have to wait and see.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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28. July 2008 by admin.
Monday,
The DJIA shed 239 points today, but the sell volume does not confirm the selling to be anything more than short-term panic selling by those who do not know any better…
Today’s volume on the DJIA shows it to be less than Thursday’s sell off and that shows the sell conviction is weakening over time rather than strengthening and that is a warning flag to bears to start covering their positions. This comes (amazingly) just in time to provide support for the market at a key technical point which will create a new bullish up-trend line; and we all know what that means – Buy. I would look for the lower BB line on the DJIA to provide the support level here.
The NASDAQ lost 46 points for the day also now pulling back to technical support on the chart, and though we can still bounce around for a day or three; I would look for us to find support provided by the middle BB Line on the NASDAQ chart or the lower BB on worst case scenario… I would be a buyer here of quality oversold technical opportunities, with a stress on the word “Quality”.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is tells came in at (01) showing us that this pullback has simply found the same support line it bounced off of. When the bounce is fake you tend to see the support level vanish on the test of the support, butt we don’t have that so we anticipate this pullback (which we knew would happen) to be nothing more than a pullback and a strong buying opportunity.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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25. July 2008 by admin.
Friday,
Friday’s close was up a small amount showing a little confidence by investors ahead of the weekend, but this is also due to a desire to slightly correct yesterday’s major sell off… The moral of the story here is to use the pullback as a buying opportunity plain and simple.
The DJIA gained 21 points for the day, basically flat all in all. I would not venture to guess whether this is the bottom of the pullback and knowing that this is only a pullback we need not concern ourselves with this question, but rather seek to find quality opportunities at oversold prices, and there are many out there.
The NASDAQ gained 30 points for the day retracing to support on the middle bb line. I reiterate my opinion on this market, this is a real bottom we have struck and any selling should be used as a buying opportunity.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is tells came in at (03) showing no major buying took place today, and unless we have bullish news over the weekend or Monday, I would expect to see a little more selling before big buyers took control of the market buying what weak investors are selling.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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