Now, i haven't said this in a long time but i am starting to see very nice bullish formations emerging again guys. It's time to focus and really see if this for real. My hunch, tells me the bulls are gonna surprise here. This recent selloff has done an amazing job of turning everyone bearish and extremely cautious about stocks. Some are even expecting stocks to "CRASH" again and i am hearing DOW 3000 predictions again. Stocks climb a wall of worry and boy-o-boy do we have a wall of worry now.
I do NOT know how long this rally will last but as of now, i am not interested in fighting it. Buying dips is gonna be the key UNTIL it stops working.
This attached watchlist if filled with bottoming formations, bullish falling wedges and falling channel patterns which i consider high probability setups.
Please note: I am nor a perma bull nor a perma bear: I just scan thru hundreds of stocks daily and nightly and i try and get a feel for chart patterns, sentiment, supply versus demand characteristics and try to gain an edge based on these findings. Sometimes i am right and sometimes i am wrong but i always remain neutral and objective and approach ALL trading sessions respecting both the powers of bulls and bears.
Best of luck guys! Hope this helps you.
6 comments:
The new background makes for a tough time on the eyes. Thanks for the charts good reading
thnx for feedback jay.
That is a great approach, as the "stock market" is really a market of stocks.
The internals are diverging positively; for example, look at the 5-day moving average of $NYAD versus $SPX:
http://stockcharts.com/h-sc/ui?s=$NYADV&p=D&b=5&g=0&id=p49453176918
'a market of stocks'...i love that!
'a market of stocks'...i love that!
Deflation Alert: "The stock of money fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6pc.. the steepest decline since the Depression. The assets of insitutional money market funds fell at a 37pc rate, the sharpest drop ever"
http://themeanoldinvestor.blogspot.com/2010/06/deflation.html
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