Sunday, November 19, 2006 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.