Hello Stockhoppers, Well tell me is the market just taking a little rest or is it exhausted and ready to retreat? After all it has climbed a big hill with the DJI approaching the 11000 mark, just when you think it is going to break out, it falls back. Now as you can see by the DJI index chart it has had several areas of minor consolidation, the current one being the most extensive of the three areas. The thing that concerns me most is that it is also moving farther away from the 13day and 21 day exponential moving average(you know these are the only indicators you really need to trade the major indexes)which means what? the market will soon retreat back to these levels where we wait to see whether it will bounce off these levels or continue in the downward trend.
My current position is with GE I am short this stock at 17.93 I am a little out of the money right now but the reason I have not covered this position is because if you were to ask me if I would still short this stock as of even three days ago I would still say yes. I do believe it is showing short term weakness, check out the chart. By the way watch Ford and wait for its rebound off the averages.
That is all for now until next time....Happy stock charting!!!
No comments:
Post a Comment