Market Musings for January 19, 2007
Market Watch:
SPX: Wider market is seeing a healthy pullback after bullish action in last few sessions. Although it would have made me happier if the high was higher but then since when has market started trading as per my happiness. I will take what comes my way.
COMPQ: Now this is a really nasty one today. After few days of fairly bullish action Nasdaq comes crashing down like this. Close below the resistance area through which it had broken is not a good sign. Gap down and such a wide body candle. Shudder. But then as I said, market doesn’t trade to the garb of perfection we try to put on it. Nasdaq is short term oversold. In an ideally trending market this would be great opportunity to load up on longs. But such strong negative action has soured it for us. Nevertheless I will be looking for longs. If the market shows strength tomorrow, the longs will trigger, otherwise no. But my guess is that Nasdaq will languish tomorrow IF it does not gap down and crash further. Maybe that is for best as it will give time for the wider market to pull back a little more and setup nicely for longs
DOW: Biggies continue in their monotonous uptrend. That’s good, isn’t it?
Industry Watch:
Strong Industries: Broker/Dealers, Biotech, Pharma, Healthcare, Chemicals, Retail, Airlines & Consumers
