So much for all those bullish candles that popped up yesterday. Today was a great example of why you wait for confirmation before initiating positions. The selling accelerated again today, creating another distribution day. I think we can safely say that the rally is done now, given all the distribution days in the last few [...]
Posted by 30 September 2003
Trying to Bounce
Th reversal candles I’ve been waiting for showed up yesterday. There were a lot of hammers and bullish harami made yesterday and most of them were right at the lower Bollinger Band. To give an even stronger buy signal, the stochastic indicator on many of those stocks are flashing a buy signal by turning upward [...]
Posted by 25 September 2003
Another Distribution Day
There’s only one word to describe Wednesday’s action — Fugly! All the indices sold off in higher volume. That makes the 4th, 3rd, and 2nd distribution day for the Dow, S&P 500, and NASDAQ, respectively, since September 8th. IBD preaches that you don’t want to see more than a couple of distribution days within a [...]
Posted by 23 September 2003
The Thing That Wouldn’t Die
Pretty amazing strength today given how ugly the market was yesterday. I was real surprised to see the NASDAQ almost close yesterday’s gap, and on increasing volume. Like I said this morning, the uptrend must still be respected, and it wouldn’t surprise me to see the market levitate through quarter-end on the backs of underperforming [...]
Posted by 23 September 2003
Sell When You Can, Not When You Have To
I was starting to feel a little silly for getting cautious last week when I pointed out the potential double top on the indices. The day after I made that observation the market pushed above the resistance of that potential double top. Well, after yesterday’s gap down it’s looking like that push higher may have [...]
