Market Musings and Trading Plan for January 29, 2007
Market trend:
|
|
Hourly |
Daily |
Weekly |
|
S&P 500 |
DOWN |
UP |
UP |
|
Nasdaq |
RANGE |
RANGE |
UP |
|
DOW |
RANGE |
UP |
UP |
Market Watch:
The indices in general formed a long tail and closed towards the highs of the days. That would generally portend well for the bulls given that the markets are more to the oversold side, although not exactly heavily oversold. It’s possible to look for long entries with market strength. FOMC announcement is approaching on Wednesday and that has likelihood of playing havoc. It is quite likely that market will be range bound till then. Given the flaky nature of the market’s bullishness and upcoming FOMC announcement, I do not feel comfortable initiating new trades. I will sit and watch this one out.
SPX: All in all SPX is borderline uptrend. Frankly it is very close to being classified as range bound. All it needs is a couple of red candles and we are there. But it is short term oversold and does have upward push, so we will give it the benefit of doubt.
COMPQ: Nothing much to be said about the techs. RANGEBOUND. Certainly stay away from techs for now.
DOW: DOW is in its nice uptrend and continues to be so. Look for long entries.
Industry Watch:
Industries in play: Broker/Dealers, XLF (Financial ETF), Pharmaceuticals, Materials, Chemicals, Retail, Telecom - $XTC & TTH & Consumers
Free Stock Picks:
None today
