From: Fallondpicks.com
After a couple of weeks of mild bullish action, the tech secondary indicators [$NASI, $NAA50 and $BPCOMPQ] took a sizable step in the direction of the bears, confirming the sidelines (i.e. cash) as the safest place to be at the moment. Volatility rose to meet 18 resistance and looks ready to advance further, injecting another level of uncertainty into a weak market. Precious metals may not be the best haven to hide as double tops take shape in gold, and silver, supported by bearish divergences in their respective MACD trigger lines. One could argue for a support buy at $542 in gold - but keep stops on a loss of Friday's lows to be safe if buying. The bearish divergences in the precious metal MACDs, was also apparent in some of the precious metal miners, e.g. BGO, PAAS, and HL. Cash is king.
Newsletter stock update
Target hits: FTEK was a Subscriber pick for February 6th and reached its target for a 27% gain.
Stop hits: JBL featured as a Breakout for March 21st 2005, June 23rd, November 25th, and January 20th, cut below near term support to hit its most recent stop price. The four plays closed for 36% gain, 19% gain, 11% gain, and 5% loss respectively. OATS closed Friday on a weak bullish harami, but the lows of the day were enough to knock the most recent stop to close the February 6th play for a 19% gain, and the February 28th play for a 7% loss. VSH was a Subscriber pick from October 31st, which gapped down on Friday and into its stop price for a 21% gain.
Subscribe to my newsletter through the 2Checkout.com link on the right-hand margin of this blog.
fallond