Tuesday, January 27, 2009

YESTERDAY'S ACTION (1/26)

It's snowing here in MD!

I saw this article on iTulip about how wholesale liquidators, the companies that sell goods for companies that are going bankrupt, are themselves going bankrupt. In addition, just sampling losses in tech jobs, the trend seems pretty clear to me. The bad news keeps pouring in, yet the market holds. Odd, no?


Also, the updated chart on yesterday's Existing Home Sales data:

Yesterday, we formed a doji, or for some technicians, a small shooting star. Clearly, we are flagging on lower volume. This is 'healthy', but is usually signals a continuation in the prevailing trend. I will not put overnight money to work until we clear this 800-855 level on the SPX, otherwise, you're bound to see more faking. This consolidation area is purely a daytrader's haven, so if you're swinging, it's good to wait for a breakout or breakdown.


I am still focusing on the financials, because they are forming very clear flags and pennants on lower and lower volume. What you want to see is a breakout of breakdown on much greater volume that usually exceeds the past 2-3 days' volume levels. They will make really great swing trades when, like I said, the time is right.


Finally, countries in a recession, or pretty damn close to one:

Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!