Bottom-line here is Bottom fishing may be the new down-rigger necessary sport. Most of the charts look like SWC which could have a "bit" more downside. But at these prices....Do the math.
The same could be said for the battered home builders. TOLL Brothers has held up nicely in the latest downside barrage. Could it be the best in breed going forward. Let's say 3-5 year leaps?TOL
Sometimes its fun to compare two completely opposite stocks like POT and MOS. Potash is best in breed agriculture while Mosaic is primarily a technology advertiser. Wow are these guys and their sectors headed in opposite directions? POT appears to be forming an inverted H&S while MOS could be headed for sub $20 to form a right shoulder of a massive monthly H&S
LG 30 DAY - 30 MINUTE
And lets use oil to segue into China...Petrochina and the FXI may be in the bottom-fish category as well. If oil is going back to $120 I figure these two will follow suit.
And lastly there is AMZN: inverse H&S going back to highs only to fall hard in the end... Which is really the longer term picture. Bull run for now which will not set new highs in 2009 and then a BRUTAL collapse of markets lasting much longer than 2 months. The government is merely delaying the inevitable and setting those up smart enough to realize you that if you were long and did not get out your second chance awaits over the next 6-9 months and you had better get out and get short prior to the old highs. But till then it is bull season and the trend is your friend.