Sunday, December 17, 2006

Stockcharts.com: Weekly review

Stockcharts.com is back online. Not all the public listers were able to update for the weekend, but there is still plenty of information to review.

Joe Reed hadn't added much more to his indices; although he did give a chart for NYSE - by his reckoning there looks to be a top given the PPO is flat on an RSI > 70.



but is monthly chart favors continued strength (presumably after a downward leg over the short term):



His healthcare chart shows a breakout - but he looks to be sticking to his top given a false breakout occurred in January.



Mitchell Meana highlighted a lovely consolidation triangle in the 60-min Q's; upside target of $45.88



But his daily Qs chart is on a 'sell' signal:



It still looks like he favors further upside in small caps as he waits the bottom of wave 4 to the rising channel:



But, his Gold Bugs index ($HUI) has a 1-2 wave of a larger downward trend:



Ted Burge repeated his mantra about DEMAND in control, but markets at RESISTANCE.

Dec 16th! Be not deceived! Stick to the facts. The FACTS are ready for you to consider. The moment anyone tells you that they know what the markets will do tomorrow, change the channel, and in a 'rush'.

My new SOX, GOLD, SPDR and HLDR pages are an overwhelming favorite. You can see it all in the new format at:

www-tic-tac-dough.com

Support and resistance is based on fact. It is objectively verifiable when the proper methodology is used to find it. It is not highs and lows and it takes time to find it. Better to spend time to make money rather than to spend money losing your time or to waste your time believing that anyone knows what will happen tomorrow. These jokers take advantage and get away with it because too many have a short memory.

Short term or longer term, buy or sell or moves to X's and O's, the pattern is DEMAND, however, we trade support and resistance and resistance at these levels is the flavor of the day, week and the last month.

When BP's are high, it is time to be defensive. When BP's are low, it is time to be aggressive. No hype and no predictions, just be aware of price activity. A 3 box reversal on a traditional PnF chart is normal price activity. The problem because of the tight range of price activity in the last couple of weeks is that it does not take much to 'rock the boat'. It is all explained in my reports on my site. www.tic-tac-dough.com

The new 'Christmas or Grinch portfolio is making money BUT we are seeing ahift to supply. Staying on the right side of supply and demand with a plan in advance and take it easy and let price do all the work.

Support and resistance makes all the decisions for you and instead of watching indicators jumping around all over the place, the only thing we must watch is price at S/R.


Robert New's semiconductor chart continues to be a good one; although he hasn't extended his support/resistance line it is clear that resistance is still in control:



But his daily semiconductor chart shows a solid breakout and retest:



He is also optimistic for the S&P:



and Nasdaq 100:



His Crude Oil chart also shows a consoidation breakout and retest:



Richard Lehman opened with a clear paragraph:

New revelation! The small caps have all been in large sideways corrective triangles on their short term charts and have broken now to the upside. I wish I'd seen it sooner, but its quite evident now. The large caps look a bit different but with the same basic outcome -- the Dow simply bounced off its channel support line. Triangle breakouts can spike as high as the widest part of the triangle in a quick burst. That means a few strong days coming. Long term charts are now once again at upper channel resistance.





On a final note, check out some of the revised (I don't when J.P. changed the format) Elliot wave charts of J.P. Russo - some interesting opinions on the Dow:



In summary: there is still plenty of bullish optimism, particularly for small cap indices. Markets are overbought - but this in itself is not a 'sell' signal. Next week is another week...


 
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