Monday, December 18, 2006

Weekend Commentary from

Newsletter, Members Click HereGiven the day that was in it (options expiration), I will open with a link to a blog which monitors the $NASI and $NYSI; what is interesting about this blog are the MACD settings used to mark reversals. In each of the charts there is a strong case for a top in the McClellan Summation index for both the Nasdaq [$NASI] and NYSE [$NYSI]. But, I have harped on this for a long (long!) it is good to see this appear somewhere else with a slightly different slant. It has been a great run, with the rate of buying defined by the channels created from July lows, but I would be happier seeing some release of tension with a swathe of good-ol' fashioned profit taking - even if this meant the rally pushed higher afterwards. A shift in leadership is needed to get fresh money working.

Friday's volume related to options expiration, but tight trading kept markets net neutral with only an upside cross of the 5-day EMA in the $NAA50 the only change on the technical/market internal front. Volatility surged to leave a bullish engulfing pattern for the indicator, but there are plenty of resistance points overhead - so I wouldn't read too much into it yet.

I am bearish for the Ticker Sense Blogger Sentiment Poll.

Newsletter update:

CSTR finally bit the dust after what looked to be a spate of profit taking; the stock featured as a Breakout for July 31st, August 30th, September 14th, and November 9th; each play closed for a 24% gain, 14% gain, 8% gain, and a 1% loss. JOBS clipped its stop; the stock featured for as a Subscriber pick for November 14th, and as a Breakout for November 22nd; the latter play closed for a 6% loss and the former play for a 2% gain. DLIA broadened its pennant to clip its raised December 5th stop price; the Subscriber pick closed for a 7% gain.