Friday, October 13, 2006

Market At Decision TIme

The stock market has been going up in bull mode since july of this year. But the time has come to pause and refresh (if the market wants). The SMH chart above shows that it's at the trendline resistance. If it breaks above the trendline then the ride up will last a little longer.
Does it break above or not? bulls are laughing all the way to the bank , bears are scared but no at extreme level. May be SMH has to break above the trendline to break the back of the bear and bulls to get giddy.

Sunday, February 12, 2006

Dow will cross 11,000 again

As the chart above depicts, Dow Jones Average is going to cross 11000 again and go some where around 11250-11300 or more . This shows that the largecaps are going to outperform the smallcaps represented by the Russell 2000. Stocks like DE,HON might be good for this cycle.

Saturday, January 07, 2006

Russell 2000 broke resistance and moving

Happy New Year.
As mentioned in the December 6th posting, the market needed a rest and it consolidated for the past 4-5 weeks.Now it brokeout yesterday from that consolidation range and it looks like will continue its upward movement.
But there's always a catch.It's like whether the market got enough rest last month to continue the upward move and not fall back. So watch for market not to fall back below 690. If it does, then it will continue to consolidate. Looking at other market indexes and components market is in good shape to continue its move upward.