MPT Rating (01)

26. August 2008 by admin.

Tuesday, August 26th, 2008; MPT Rating (01) 

Market whipsawed all over the map today as consolidating the bottom continues to be the order of the day…

The DJIA gained 26 points for the day maintaining the uptrend line with potential to press higher tomorrow.  Volume is week here ahead of the three day weekend and I would not be a long-term holder here, but would play select companies in favor of the bull trend higher; at least until just before the three day weekend where I would look for profit taking to be the order of the day.

The NASDAQ lost 3 points for the day, falling through the up-trend line, but formed another bottom signal by the close telling us we do have a support in the area that is putting the breaks on the bears, and whether we stop here or fall again tomorrow… the end result will be a support bringing about another bounce and the overall market direction will be determined from that bounce.  If the bounce fails to break higher we will have a double top which will force stocks lower, but if we break out then investors will have a reason to pause and build a base from which to challenge the next high.  As you can imagine a lot is riding on what the market does from here, but the main thing to take away from this is that your trade strategy must change to fit the market you are in… Sometimes you have to be a bull, sometimes you have to be a bear, and sometimes you have to day trade or remain in cash to survive… right now I am a bull with a tight stop for the upcoming bounce.

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) again; this tells us today’s break down in the market to a new low verses yesterday did not do any damage to the support line we are feeling in the market… so the lower low can be ignored.

As Always; Be Smart, Be Patient, & You Will Be Successful.

Posted in Daily MPT Ratings | No Comments »