Friday, May 29, 2009

Weekend Wrap Up (05/25-29/08)

After some mixed economic data the market rallied into the close on heavy volume. Advancing issues outnumbered decliners by more than a 3-to-1 on the NYSE. The government has spent trillions of dollars to prevent an all out collapse of the economy, we are now seeing some of effects such as rising interest rates, increasing commodity prices, and the weakening dollar.

The S&P shot past resistance at 914 and is showing a pattern of lower highs meeting higher lows, this pattern should be resolved in the next couple of days. Right now we are above key support levels(880/897/914) and seeing bullish patterns emerging, it’s not worth trading against the major trend and the current trend is clearly up. It will be key for the bulls to break above 930 into new highs or else we mights see a move back down to the bottom of the current range at 880. Won't turn bearish until we see a break of the current channel and close below 880.

The Nasdaq is looking more bullish, we have continued the pattern of higher highs and higher lows. Like the S&P we closed at a critical point, right at our previous highs, so we're set up either for a double top or breakout into new highs.
A brief move down would make sense since we have been up a lot lately and are at key resistance levels in both the S&P and Nasdaq, but any recent moves down have been met by buying pressure. Until we some real momentum to the downside and a break of support levels I will remain a bull.

Long, MV:
















Junk long, REV:
















Short, DECK:
















Short, AZZ:
















Short, BLK:

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