Tuesday, June 24, 2008
If I Had a Hammer...
As of this moment the DJIA, S&P, Nasdaq and Russell have all formed a hammer pattern, which is a short-term reversal pattern. There is still four hours of trading and the hammer may disappear, but clearly the market has found some short-term support this morning.
Supprt is not too surprising the day before the Fed releases their lastest FOMC statement tomorrow afternoon at 2:15 pm ET. The Fed is widely expected to leave the Fed Funds rate at 2.0%. The key of whether there is a short-term change in trend or the down trend continues will be in the policy statement, which is likely to have inflation fighting language.
Ag-related stocks POT, MOS, CF, AGU and MON are moving lower this morning...
The DJIA and S&P are slightly positive at this moment and the Nasdaq or Russell are slightly negative.
Mid-Morning Action
Moving Up: GS, AAPL, CLF, BTU, NUE, DRYS, PCLN, LEH, V, MER
Moving Down: BIDU, MON, POT, CF, MOS, AGU, SOHU, FSLR, STRA, MTL, AMZN, MA, AMZN, CNX, ESRX
Stay tuned as the day unfolds...
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6 comments:
Dave,
What a reversal. Like you said support can be anywhere in .01 increments. THe market can do anything and you have drilled to be prepared and flexible. Perhaps this bounce is a test by big money to see the conviction of the down move. Let us see.
Patrick Lynch
Dave,
P.S. You now seem to be breaking out in song at every opportunity. LOL
PL
Is that a bullish falling wedge developing on the NDX?
I know we are taught the trend is our friend..but which trend are we befriending...that's my confusion.
Long term? Intermediate? Short?
If 50% of your decisions are based on the trend which one are you talking about?
The NDX broke a double top low, could it also be viewed as a potential bullish wedge? Yes...Is it? Only time will tell.
anonymous,
You question needs to be directed to yourself as such..."What trend am I befriending?" Once you have the answer, that's the one you trade. Not asking oneself that question will definitely result in confusion to any trader.
Dave
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