As mentioned in last night’s post, it was obvious that the market was going to make a big move this week in one direction or another, and it didn’t waste much time. The market plunged from the open. Although it tried to rally late in the day, the market closed at the lows. There is little hope for the bullish case here, except for a snap back. The move is clear, the market wants to go lower.
The next level of support is the November lows. If the market can find support in this area, even if this level is pierced, there is still hope for a double bottom pattern, which could be setting up on the weekly chart.
We will have to wait for that to prove itself though.
Because I have been mostly day trading, I wasn’t hurt today. In fact, the one position I am holding, which I highlighted last night, was one of the few stocks up today, KGC.
There was also a trigger from the Watchlist, CPLA, but today was not a day to buy stocks.
In fact, I’m not looking for any new trades this week, unless we get a strong snap back rally, which I will only day trade. Otherwise, I plan to sit on the sidelines.
No new charts, but will continue watching stocks in the Watchlist, some of which held up well today.
Good luck and good trading!
One Response
Richard
February 18th, 2009 at 9:59 am
1Hrm, haven`t visited your website in a while but great analysis…looks like you`re seeing exactly what I`m seeing the markets as well. Instead of staying on the sidelines I`m actually going to short/hedge some of my longs this week.
RSS feed for comments on this post · TrackBack URI
Leave a reply