Yearly Archives: 2011
Looking for Signs of Stability
After another weak open, the bulls quickly came in to push us back in the green. I am seeing a decent amount of green in terms of individual issues in my portfolio and watchlist, such as CLNE CYOU JWN TRLG WFM WPRT. The action feels a bit slow, as many traders are glued to CSPAN on their televisions, awaiting a debt ceiling vote. I am not interested in the actual political outcome so much as the reaction, or lack thereof, by the market.
Despite the selling that we have seen since Monday, the senior indices have yet to suffer any type of major technical damage. Instead, breakout plays gave way to weakness, and we have essentially pressed the ‘Restart” button in terms of looking for many stocks to stabilize and set up again. To be sure, the bulls need to hold the line here, but betting on a major breakdown has been a losing play largely since March of 2009. The danger of this time being different is omnipresent, but I do not have much of an interest in betting on it yet.
Comments »Looking Here for Relative Strength
The following stocks remain technically strong in spite of the broad market selling this week. In the event that we see the selling abate tomorrow, I expect them to continue to outperform and show relative strength.
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Stock #Market Recap 07/27/11 {Video}
Down and Dirty
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As you can see on a 3-minute chart of the S&P 500 below, the lack of any kind of bounce today has been uninspiring. We are closely getting towards a now-or-never scenario for the bulls, who seem to have an infatuation with pushing their luck as far as it will go in 2011. If we lose 1311 on the S&P, the lows for the day, I would expect an ugly close, breaking below the descending triangle. Of course, it can be argued by the bulls that the market has stabilized on the trendline from the daily chart that I drew earlier today.
In sum, the picture is a bit murky, with the bulls still holding the overall advantage, despite continuing to flirt with disaster.
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Walk the Throwback Line
[youtube:http://www.youtube.com/watch?v=k7K4jH7NqUw 550 412]
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Good eye by 12631 member @gapandyap pointing out the second major test (as support) of the Russell 2000 Index trendline. Whether this throwback can hold will be instrumental in determining where we go from here. What you are looking to see if you are a bull is a clear sign of stabilization this afternoon. To state the obvious, bears want to see us lose the trendline and bring in a fresh wave of sellers as a result of that.
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