Monday, April 13, 2009
I Double Doji You!
Two days two doji's. Could this be worse than the dreaded "Double Dog Dare You." Remember from "A Christmas Story", with Peter Billingsley and Darren McGavin. Ford looks to be as indecisive as I am. Overbought technically but in a definite uptrend. I should take some profit and let the rest ride with a trailing stop to lock in a profit on the remainder of my position. Never kick yourself for taking a profit. I could sell about half my position and let the rest ride for a long time. Same holds true for BWEN. Both trades are up over 77% from where I bought.
Sunday, April 5, 2009
Keeping an Eye on these Charts
The $SPXA50 chart is approaching the 400 resistance level. We could be nearing the time for a correction. What would be nice to see is for the 400 level to be surpassed and this rally to continue. Although the number of S&P 500 stocks above their 50 day moving average has rose dramatically since the March 6th low, the $SPXA200 has just now reached the miserable level of 77. Yes, only 77 of the 500 S&P stocks are trading above their crucial 200 day moving average. The one bright spot this is the highest level we've seen in the $SPXA200 since October of last year. The 3rd chart I'm watching closely is the $NYAD chart. If the advance/decline line can stay above the 50 day moving average will tell a lot about the future of this rally. Something else I should mention is this is the 1st time since early 2009 that the 5 day ma has been above the 65 day ma on the DeadBeatChart. The last time this occurred the S&P 500 dropped nearly 300 points. BE CAUTIOUS!!
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