Weekly Stock Charts review from Stockcharts.com Publishers

February 23, 2009

Late to the game here as we moved apartments. Likely be quiet for the next few days as we get setup for broadband (a chance for yet another multi-week delay).

Yong Pan shows a mix of bullish, bearish and neutral signals; not one to inspire confidence and the market trend is clearly down. However, Yong is looking for a rebound.

Volatility looks remarkably complacent for a bounce...

Hollow red bars for a bounce?

But no bottom yet. Breadth weak and weakening...

Maurice Walker details his trades:

After day trading on the short side on Friday, I closed my short and went long on several swing trades with the ultra proshares QLD, SSO, and DDM. My decision to go long was predicated on the 15-minute charts in conjunction witht 5-day stochastic on the S&P 500 daily chart. I also doubled down and bought future contracts on the S&P 500 E-mini (ES). Pleased be advised that we don't know yet if the Dow or the market has bottomed. I am still just day and swing trading. So I may exit the trades quickly if the 15-minute charts flashes a sell signal or if prices slam into overhead resistance, or if the trades turn against me. But at this time we have a beautiful technical set-up on the 15-minute charts.

and his investments:

As you know, I am also an investor. Today I doubled down on my position in the financials ultra proshares (UYG) for a long term hold. I have been accumalating shares in the financial ETFs for the past several weeks. I've traded some of the shares a bit, but I think the buy and hold strategy in the financials right now is the way to play it. And in a few years there will be a pot of gold at the end of this rainbow.

Interesting volume on the DDM 15-min (buying; similar story for the SSO and QLD)

Stochastic set up on the S&P

A VIX breakout?

Richard Lehman is seeing channel confirmation bounce in the 5-min timeframe (bullish):

2/21 -- After spending more than a week in the current short term downchannels and failing to even hit the upper line on the most recent try, the indexes actually began accelerating their slide on Friday. A few of the downchannels now show slope changes to accommodate the lows. No doubt, more than a few worried souls were selling in anticipation of a full scale break of the Nov lows. But we didn't get that...at least not yet, except for the Dow. The 3pm bounce brought some hope for a last minute save, though gave most gains back by 4pm and left almost everything in the current ST downchannels. So we are left with a trememdously weak showing, but one that has hit the lower lines on both short term and some longer term channel lines. (The XLF set another new low and is now the first index to hit the lower channel line extending back to November's lows.) Thus, there is a reasonable chance we can muster a bit more upside bounce here in the short term, but even lower prices after that are expected. On the other hand, GLD has hit its upper line and is due to retrace.

2/19 -- The majors couldn't do anything but slip down hour by hour in their ST down channels. The Dow was trying but continually failing to hold at 7500. I waited for the cascade of selling to come before the close, but that didn't quite happen. Maybe tomorrow -- why not, after all its an option expiration day! A lot of indexes are coming down to long term lines from the October and November lows, and those lines provide a great bounce opportunity if we get there. That would be at new lows for the Dow and SPX, but perhaps not quite on the small caps. Gold is very toppy here, but oil seems to be coming on now.