Trading on the Edge

Market trend:

Market Watch:

SPX: A decisively down day today that has brought this market to a ripe oversold condition IF we can say with certainty that we are in an uptrend. But are we in an uptrend? Daily timeframe, which is the focus of our trading, is in an uptrend, even if barely so. Things would have been much stronger if we could have a much higher high at the last swing high. But let us take what comes our way and make the best of it.

COMPQ: Techs saw a slight gap up and then a crash. It formed a long red candle which is not good at all. Are we going to see it travel down to the low of the trading range that it has been in for the last few months? Maybe so. It is fairly oversold (does not mean that it can’t get further oversold) and given the relative strength from other market indices, I will take my chances with going long but stay away from anything that is related to internet, software, semiconductors or technology in general. Let there be not doubt, techs are being hammered. Stay away from them.

DOW: It saw its fall today and brought the index to oversold and synching up the market for going long. It is in a fairly long uptrend and there is no reason to believe that it is coming to a stop until it actually does

Industry Watch:

Industries in play: Broker/Dealers, Biotech, Pharmaceuticals, Healthcare, Chemicals, Retail, Airlines & Consumers

Free Stock Picks:

Today the market was weak and consequently we did not see too many triggers. Only