Technical Analysis | Stock Market Timing Signals | Top Stock Picks
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The Fed announced that low interest rates are here to stay until at least 2011. That announcement wasn’t enough to keep the markets win streak intact. Traders also had to contend with a rise in wholesale inflation and flat earnings from GE.
Also, bank shares led the way down today but the damage was contained to approximately half of yesterdays gain, but on slightly increasing volume.
Let’s take a look at the stock charts for some technical analysis and market timing insights.
On the weekly stock chart, prices are appearing still flat for the week but with more than half the trading week remaining things could still change either way. The stochastic and CCI are still pointing up with the MACD is indicating just absolutely nothing in direction. This is still a market that could move in either direction.
The daily stock chart shows the drop in prices that still held above the resistance level of 11,250. Today’s action finished with a bottoming tail but both the stochastic and CCI reversed direction to the downside. The upward movement of the MACD seems to have stalled somewhat.
On the daily chart prices dropped sharply in the first 30 minutes of trading, reversed right at the 10am reversal time to the opening price, then proceeded to lose value for the remainder of the day, with the exception of the last hour of trading.
During the last 30 minutes of trading it looked like prices were going over the cliff. But buyers jumped in pushing the average back up creating a sort of hammer at the close of the market. This could potentially add strength to tomorrows open, we’ll have to wait and see.
Aggressive traders could consider new positions during the market as long as prices are moving up and higher than the high made during the first 30 minutes of trading.
Prudent traders may want to wait until prices move up more before taking on new long positions.
Either way, now is the time for caution. Don’t be the farm on positions in either direction
Weekly Daily Strategy for next market day based on price position only. Refer to technical analysis & market timing verbiage for further details. Week End Date Weekly Trend Market Day Daily Trend 12/18/2009 Up Fr Th We Tu Up New Longs On Up Days Mo Up New Longs On Up Days 12/11/2009 Up Fr Caution Tighten Stops/Take Profits Th Caution Tighten Stops/Take Profits We Down Potential Trend Transition Tu Down Potential Trend Transition Mo Up New Longs On Up Days 12/4/2009 Up Fr Up New Longs On Up Days Th Up New Longs On Up Days We Up New Longs On Up Days Tu Up New Longs On Up Days Mo Caution Tighten Stops/Take Profits 11/27/2009 Up Fr Caution Tighten Stops/Take Profits Th Happy Thanksgiving We Caution Tighten Stops/Take Profits Tu Caution Tighten Stops/Take Profits Mo Caution Tighten Stops/Take Profits