I see a whole of of technical damage being done to charts today. Just a bit of what I’m seeing: the Dow broke its 50-day moving average; QQQQ / NDX just broke its 50-day moving average; GE is nose diving away from its 50 and 200 DMAs, which it broke a couple of days ago; Citigroup (C) just broke its 200 DMA; MOT gapped under its 50 DMA, INTC is testing the 2005 lows…
I suspect we may get some buying here, especially in the QQQQ but I wouldn’t bet the farm on that. Things should really get interesting as some recently hot stocks enter negative territory for 2006. Case in point, GOOG, which is now down for the year after being up over 14% just a few days ago. Does a mad scramble for the exit ensue?
I’ll post some charts of these and other stocks over the weekend. Be careful out there!
Jeez, it looks like a a mad scramble for the exits on GOOG has indeed materialised. The downmove was so rapid I wasn’t even given time to establish a short position. I’ll contemplate the trade come Monday, but the easy gains (or painful losses if you were a late buyer) have been made.
Livedoor fiasco, Earnings news, Oil, Iran, the Bin Laden tape, Nigeria, an inverted yield curve…talk about a confluence of negative factors.
Today, a whale turned up in the Thames River for the first time in recorded history. Maybe it was an omen.