You are currently browsing the The MPT Rating weblog archives for September, 2008.
2. September 2008 by admin.
Tuesday,
Today’s market rally was a bounce after overselling ahead of a long weekend with oil on the rise ahead of a storm that could have done more damage than it did… but the real story is the fact that this bounce was unsustainable.
The DJIA rallied more than 250 points intraday but closed down 26 points for the day, forming the dreaded inverted hammer candlestick (sell signal) as seen on the attached 6 month daily chart… this is no place to be long this market, and every quality opportunity I see is in favor of shorts are soon to be. “Can” this market climb higher? Yes. “Will” it fall lower? Absolutely.
The NASDAQ lost 18 points today on increased sell volume which bearishly engulfs all of last week’s light volume bounce, and gave us an even lower low with increased volatility… bottom’s are not formed on major volatility and there fore we are likely to see more selling before a tightening of the trading range brings a potential bottom back into focus – this is not it. It is important to note the market is now at levels it used to have a strong support level at (shown by an MPT Rating of 01), but the MPT Rating has now changed showing no more buy pressure support exists at this level.
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) again; we have seen the market rally on these low figures, but the moral of the story here is that “Smart Money” is not loading their boats with stock in anticipation of a major rally here, and that tells us volumes about the conditions of the current market.
As Always; Be Smart, Be Patient, & You Will Be Successful.
Posted in Daily MPT Ratings | No Comments »