Daily Stock Chart Check 2-25-10

Good Morning,

So far this week the market has shown a great deal of predictability(We know all that can change in a hurry). Before the open lets take a look at the chart for the Dow Jones. We are concentrating on the 13 day and the 21 day exponential moving average. Look how the Dow seperated last week from these averages, and if you have been following along with my recent blogs, I have mentioned that it will seperate but count on the return back to these averages as they do not (usually) stay seperated for a very long period of time, as was the case for the Dow here recently, as it moved back to its averages this week.

The Dow now is sitting on top of the 13 day and 21 day ema, will it consolidate a bit more? or will it bounce of these averages today and continue its uptrend and head toward the resistance level of around 10500? I would wave a short term Red Flag if the Dow goes below its last 2 day low of 10267.

HCBK one of my active trades is showing some consolidation with the 13day ema crossing upward over the 21 day ema which is a bullish sign, I also am looking at this stock chart seeing it meet its support level of around 13.00 and yesterday bouncing off those levels in a positive direction. That is why I will stay with this trade and look for its momentum to carry it over the 13.47 mark.

Yesterday I exited IPG at 6.91 (Bought at 6.82) for a small gain. The reason that I exited was that the stock chart showed me that the 13 day ema was crossing over the 21 day ema in a downward direction alerting me that it looks like it will continue its downward trend and head back toward its support levels of around 6.30. As I said in a recent blog this chart has formed a classic head and shoulders formation. Hey no matter how small the gain, it is still a again and I will take it over a loss anytime.

Until tomorrow.....Happy Stock Charting!!!!