Posted by 7 January 2008

January 7, 2008 Stock Market Recap

It was a choppy back & forth session today which ended near unchanged. The Nasdaq closed down for the seventh session in a row but most of the other indices closed up on the day. So the day showed confusion and/or a stalemate, which is often what leads to a change in direction. Given how oversold we are and how far down we’ve come in the last 7 sessions I have to expect a relief rally is due. But I think that will just be an opportunity to initiate shorts. I think the freshly broken August trendlines, especially on the Nasdaq, will be important “lines in the sand”. They are the obvious spots for bears to try to defend.

Trend Table

No changes

Trend Nasdaq S&P 500 Russell 2000
Primary Down Down Down
Intermediate Down Down Down
Short-term Down Down Down

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.

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Comments

  1. Posted by William on January 7, 2008 at 9:04 pm

    Mike

    Can you possibly post a T2108 intraday chart, too? Thanks.

    William

  2. Posted by Michael on January 7, 2008 at 9:07 pm

    Intraday or daily? I’ll post another T2108 daily chart once it gets near 20. Today’s chart looks pretty much like the one I posted on Friday b/c T2108 barely moved today. It closed up 1.32 at 32.24

  3. Posted by William on January 7, 2008 at 9:14 pm

    Thanks, Mike.

    Indeed. A daily T2108 chart is more useful.

    Good trading to you in 2008!

    William

  4. Posted by Mike O'Connor on January 7, 2008 at 10:15 pm

    William,

    I see that T2108 is the percentage of stocks that are above their 40-day moving average:

    http://tradermike.net/2005/03/time_to_whip_out_t2108/

    There’s something like that on StockCharts that you can get yourself every day. It’s $NYA50R, the percentage of stocks on the NYSE that are above their 50-day moving average, and here’s a link to a chart of it:

    http://stockcharts.com/h-sc/ui?s=$NYA50R&p=D&yr=3&mn=0&dy=0&id=p21086580978

    You can hit the Annotate link under that chart and then put vertical and horizontal bars on it— to better see how the dips line up and to see how when the index dips to a certain low level the index always seems to be bottoming (we hope).

    You can do the same with $NAA50R, for the Nasdaq.

    -Mike O’Connor

  5. Posted by Dr. Duru on January 7, 2008 at 11:03 pm

    I like the new look of the site.
    I am noting that the S&P 500 bounced after nicking the November lows. I agree you gotta pound out of longs and/or short the next rally, but I am waiting for a clear break of November on the S&P 500 before I am officially a bear again…

  6. Posted by William on January 8, 2008 at 7:24 am

    Mike (O’Connor),

    Thanks for your suggestion. I’ll certainly check it out.

    -William

  7. Posted by Michael on January 8, 2008 at 9:33 am

    Yes, good suggestion Mike. I posted the same a few times before. Here’s one of those times:

    (If you don’t have TeleChart, there are similar indicators at StockCharts.com, like $SPXA50R, $NYA50R and $NAA50R):

  8. Posted by medin on January 9, 2008 at 10:54 am

    I want to scan stocks for bull and bear flag patterns. Where can I get those? or can you tell me the programming code for that?

    Thanks
    Medin

  9. Posted by Michael on January 9, 2008 at 10:59 am

    Medin,

    Nothing comes to mind. You could try asking in the Elite Trader forums.