Good Morning Stockhoppers, Here we go again, in my last blog I threw in a word of caution. Well I hope you have been keeping a close eye on your money and adjusting your positions accordingly.
Lets get to it here this morning. Things are looking a little ugly here, and looking at the dow chart it may get worse. Yesterday we finished around the days low and could fall through support here today and if we do LOOK OUT BELOW!! and we will have to find new support before we see a turnaround. Today it is not looking good here. So if you are in for the short term I hope your stock(s) does not gap down today. Look at the dow chart we already have had a double bottom (1-2-3 formation). Look at our 13 day exponential moving average and our 21 day exponential moving average. The only real positive we have here today is that prices have moved away from the 13day ema and usually they will not stay away too long, but when the bottom falls out there are no rules with a crash, we have already seen a mini crash here with no real rebound which could lead to a major crash, I know it is a hard thing to do taking any loss but covering your positions now may save your money to re-invest when we find support here. Its all a part of being a serious trader, you have to get through these turbulent times.
Now for Ford, traders this is a bit scary, there has been quite a bit of good new(see the news really amounts to nothing, its all in the charts) yet the stock continues its slide. Look at the chart it is nearly identical to the Dow and could easily fall through support today. I am still long this stock and should have covered yesterday, I will take my own advice today and cover because we are looking at about a six month support level that it could break through and if it does there is no support in site and we could see year end 2009 levels. This is serious stuff here folks do not fall in to the same buy and hold trap that took so many traders and investors money in the last few years and left them with nothing. Live to trade another day!
No one cares about your money like you do........Until next time,Chart wisely today!
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