Sunday, November 19, 2006

Fallondpicks.com: Weekend commentary

Newsletter, Members Click HereMore of the same as the various market rallies kept pushing along. Volume climbed to register an accumulation day in the Dow, but not the S&P (or other indices). Small caps [Russell 2000] managed a positive test of 783 support; but lost out against tech averages [NASDAQ and NASDAQ 100] in terms of relative strength - pushing a more neutral alignment of markets {Tech averages > Small caps > Large caps}. On the flip side, the semiconductor index was able to cling on to its break of the 200-day MA as its supporting technicals continue to improve.

Tech market internals [$NASI, $NAA50 and $BPCOMPQ] were mixed with gains in the $BPCOMPQ and $NASI, but a small loss in the $NAA50. However, there was no bearish cross of the 5-day EMA in the $NAA50. It is important to note that bearish divergences in supporting technical indicators remain for these market internals. Also, volatility held bullish wedge support for a fourth day in a row (this is likely bearish for the market with a move to 23, from 15.33, to coincide with a drop in the markets).

To repeat a mantra of recent weeks, I remain bearish for the Ticker Sense Blogger Sentiment Poll.

Newsletter update:

SIM hit its raised stop from November 14th. The stock featured as a Breakout for September 6th, October 10th, October 25th and November 14th. Each play closed for a 28% gain, 17% gain, 1% gain and an 8% loss respectively.


 
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