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A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Saturday, October 18, 2008

QQQQ weekly reversal and AMZN

The QQQQ was the only major indice to post a week engulfing the previous week an thus possibly setting the tone for a bounce of the overall market. However it is a concern that the open and close are centered in the week suggesting major indecision. The bottoming process continues...
AMZN backfilled the gap up of early 2007 found support and bounced higher. Looking at a 5 yr weekly and then at a shorter term daily chart a long trade could be placed using last weeks close as a tight stop and the recent low as a loose stop.
Bottom line here is AMZN will test the falling 20 day EMA again and if it breaks to the upside........

Thursday, October 16, 2008

10 day 10 minute graphs...

The VIX has formed a cup with a handle over the last 5 days retracing back to the 61.8% Fibonacci line. Failure will result in the VIX testing the recent lows.
The major indices have bounced and made a higher low but are still beneath the 200 EMA. It is interesting how this almost exactly correlates to a fib line on the $INDU.
The SPY battled back to the 200 EMA but sold off at the end of the day...
And the real battleground in the QQQQ was sold off hard on the close.
Oh to be a trader......

Tuesday, October 14, 2008

The VIX is telling the story....

When I said a few days ago "the VIX would fall" I did not figure on it falling from the 70's. WOW!!!! It is still amazing how Fibonacci levels come into play even on the VIX. It appears that for the time being the government has put the breaks on the freefall market. It is merely a bouncing ball losing momemtum with each successive bounce......

Monday, October 13, 2008