From: Fallondpicks.com

Mar 19th: Another day of indecision for the markets. The Russell 2000 flashed a second doji in a row at point above support. Without knowing the volume, it is hard to say what is going on here - but assuming relative trading volumes similar to that of other markets, the likely action is heavier volume, bearish churning. Small caps still 'lead' the market, but the picture is very fluid. The one market which may muster a bounce is the semiconductor index. The small doji just above support, on oversold slow stochastics, could drive a small bounce to last Wednesday's highs; but beyond that it will likely struggle. Any bounce in this index should help the NASDAQ and NASDAQ 100, but both of these indices are overbought and vulnerable. The Dow logged its fourth consecutive accumulation day, but the 26 point gain on 600m volume was disappointing. The S&P closed Friday on a small doji (also on highr volume, for its fourth accumulation day) - this looks to be an excellent swing traders cue; trade break of high/low - stops on the reverse side.

Tech secondary indicators [$NASI, $NAA50 and $BPCOMPQ] remain on the bullish side of the fence; i.e. all three are above 5-day EMAs. But, none of these indicators are showing technical strength (wrt: MACD, slow stochastics, and ADX). Volatility is once again preparing for its next run to scare the markets.

Newsletter stock updates:

Target hit: none

Stop hit: WIRE first featured as a Subscriber pick for September 16th, it later featured as a Breakout play for November 2nd, February 1st, and March 2nd. The respective plays closed for an 83% gain, 38% gain, 10% gain, and a 9% loss. There is a good chance for a bounce off the 50-day MA (watch for this on Monday), so further gains cannot be ruled out; but for my purposes the play is exited.

Model portfolio: RAVN was stopped out at $33.89.

Popular posts from this blog

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Big bearish engulfing patterns as positive start negated

Being "Right" but still losing...

Archive

Show more