| S | M | T | W | T | F | S |
|---|---|---|---|---|---|---|
| « Sep | ||||||
| 1 | 2 | 3 | 4 | |||
| 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | 15 | 16 | 17 | 18 |
| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| 26 | 27 | 28 | 29 | 30 | ||
14. August 2008 by admin.
Thursday,
The market ignored a flood of negative economic data today and made the bounce higher to retake support from which to try and advance again… But is it legit?
The DJIA gained 82 points for the day which was not enough to bullishly engulf yesterday’s activity (at least not by the close) and with today’s low still being lower than yesterday it is safe to say we have bounced, but whether we hold that support is another story all together. The slow stochastic is still in a down trend after coming off the short-term overbought signal and twice at that… I have little faith in the bull rally of this market as we continue to see resistance on the chart at the old support level and that is just not promising. The MACD is still constricting in preparation for a bearish crossover and some stocks are already starting to break down and reflect this bearish crossover on their individual charts… that is a trend I expect to see more of.
The NASDAQ made a 25 point gain by the close, but the slow stochastic remains overbought at 88.17 pressing against the upper BB line which has yet to retrace properly to the middle bb line and this means the growth is less likely to be sustainable. This helps explain why today’s buying was on low volume. The real negative for this market is the RSI indicator which is reading 63.74 at the close and if we get over 70 it’s time to sell the NASDAQ like there is no tomorrow.
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 (00); this tells us we have bounced off a support but there (again) was no substantial “Smart Money” buying to support the rally – it will be short lived.
As Always; Be Smart, Be Patient, & You Will Be Successful.
Posted in Daily MPT Ratings | No Comments »
13. August 2008 by admin.
Wednesday,
The market sell off bounced mid day but failed to show any strength to advance and hold a gain… will tomorrow be better? I would not count on much from the markets at these levels.
The DJIA lost 109 points for the day, the candlestick formation (hammer) could try to advance tomorrow, but the technical warning signs of an upcoming drop are well signaled on the chart. Today’s sell off again pierced the up trend line the market has been dancing on and this is telling us that there is an up-coming fall in the future.
The NASDAQ shows an attempt at a base today with its candlestick but the end of the story remains the short-term over bought conditions… the market’s upside from this point is very limited, and the safer bet is in favor of a sell off.
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 (02); this indicates we are likely to fall lower before attempting to bounce higher in the overall markets. And as consistently shown there is no “Smart Money” buying going into these pullbacks in anticipation of a long lasted bullish rally – in fact “Smart Money” is selling the rallies in equities.
As Always; Be Smart, Be Patient, & You Will Be Successful.
Posted in Daily MPT Ratings | No Comments »
12. August 2008 by admin.
Tuesday,
Markets sell off as concerns over the financials come back into focus…
The DJIA gives back 139 points for the day, but with today’s candlestick formation there is no hope of a quick rebound higher tomorrow… The slow stochastic indicator is still short-term overbought at 84.75. The momentum indicator on the MACD is showing a pullback is in effect, and though we may see upside attempts as the market still believes this is a bull market rally (which we disagree with), the end result of the situation would be limited upside with huge downside potential still on the charts. The smart play continues to be the short opportunities in my opinion.
The NASDAQ lost only 9 points for the day and though bulls may like that, I suggest a review of the situation as the short-term overbought conditions do not suggest further upside to be promising. The slow stochastic indicator remains at 90.87 (heavily overbought) and the RSI is at 61 which would limit any upside potential regardless of bull or bear view point. Today’s candlestick formation being a Doji, is less than promising for bulls as the wick from the top is longer than the wick from the bottom and this only confirms yesterday’s inverted hammer (sell signal).
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 (02); this indicates we are likely to fall lower before attempting to bounce higher in the overall markets. And as consistently shown there is no “Smart Money” buying going into these pullbacks in anticipation of a long lasted bullish rally – in fact “Smart Money” is selling the rallies in equities.
As Always; Be Smart, Be Patient, & You Will Be Successful.
Posted in Daily MPT Ratings | No Comments »
12. August 2008 by admin.
Monday,
Markets rally and then sell off forming the inverted hammer sell signal across the board…
The DJIA closed up more than 48 points but the day’s candlestick formation is an inverted hammer on low volume. The slow stochastic indicator is at 79.33. Can the markets rally higher from here, sure but the technical signals don’t lie and in hindsight today’s major market average sell signal will make good since. The upside potential from here is limited with the current slow stochastic reading, but these low volume rallies tend to continue higher until the other shoe drops so to speak, and once that news or sell off starts we will see this entire technical set up shatter.
The NASDAQ rallied +25 points today, but again the candlestick formation is warning that this thing is overbought but at this point it does not matter whether you are a bull or a bear we should both agree this market needs a pullback as the slow stochastic indicator is at 88 (anything over 80 is over bought), today’s close was sell above the upper BB line, and the RSI indicator is (to be used to note very overbought/oversold conditions) at 62.94 – one way or the other I see a peak this week, if today was not already it.
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); this support indicator at this level does not provide any real guidance, but it does continue to show we have no smart money buying at these levels… I maintain this is nothing but a bear market rally, on low volume during summer months with no institutional support behind it. The news is bearish and the rally will pay the piper sooner or later – sell the rallies, and ride the fall with a short.
As Always; Be Smart, Be Patient, & You Will Be Successful.
Posted in Daily MPT Ratings | No Comments »
8. August 2008 by admin.
Friday,
Fannie Mae reports three times the loss anticipated and the market rewards investors with a 300 point rally… Know when you are being baited.
The DJIA gained more than 302 points today still gyrating on the
Let’s break down today’s activity and chart for the DJIA:
Today’s rally, though bullish engulfing yesterday’s sell off was on less buy volume compared to the previous day’s sell volume. The continuation higher remains possible, as we have stated before but the slow stochastic indicator is going to keep upside in check as it is already registering 80.69 on today’s chart and this is not a new burst to the overbought slow stochastic area. The MACD confirms we are in the second stage of this rally as it continues to trend higher, but has already begun the convergence which will end in a bearish crossover at the market peak. The RSI is at 55 and therefore the average stock is no longer oversold in this market. The most obvious and dangerous technical condition of the market averages would be the trend line the market is climb higher on here… this trend line has 4 points and has already pierced the trend once, and with the failure by the market to consolidate and form the proper base formation before continuing higher, you have to ask yourself; why is this rally setting up like a bull trap?
The NASDAQ rallied 58 points today, bouncing off a trend line which already broke down earlier this week, and in my opinion bulls are basically walking on thin air here… You can ignore proper technicals as long as you like, but sooner or later you pay the piper. Trust me, I’ve done it.
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 (02) again; this is another major rally with now major “Smart Money” buying in the market. They are either missing the great ride, or know something the average investor does not know; I’ll bet the later.
As Always; Be Smart, Be Patient, & You Will Be Successful.
Posted in Daily MPT Ratings | No Comments »