Thursday, October 23, 2008


We did well today from 3:00PM onward. I saw a double bottom forming when the right low became apparent that it wouldn’t cut through the left low and therefore went long. Going long might last until tomorrow’s open or tomorrow’s close depending on the momentum that is sustained (or is non-existent) throughout the day. The rally was encouraging as it actually made it higher without breaking down at 3:30PM. There might be more UFO sightings than stock rallies finishing strong into the close, who knows?

We made 9 new highs and 1,382 new lows today, not anything to celebrate over, but most of those stocks closed higher than the low they made. Given the large breadth imbalance, it’s surprising that we even closed positive (S&P 500, DJIA). Today, I found 6 solid breakouts (the highest count in weeks) and of course, I had to limit the number of breakdowns I would include today. They are all below with my comments.

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Anonymous said...

Hi John,
I love your site here. Learn a lot of things. MOS, CF all broken down today. Can you give me a input on POT. Look strong today and FAST MONEY on CNBC say BUY... Your take. Thanks.

John C. Lee said...

i dont know about looking strong, but the volume was nice. we just have to see if there is follow through. POT didn't participate too much in the rally from 330PM