Thursday, July 09, 2009

Greased Pole of Worry

Click charts to ENLARGE.

Back in the day, the two-word Navy description for today's action would have started with "limp".The SP500 eked out a close just above the 880 support level. The "rally" came with negligible volume and the "catalyst" Alcoa did what?
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Alcoa (AA) opened strong and finished just above support but weakness ruled.
_______________________________________________________________Looking at Cooper "type" stocks with adequate price, range, and volume, FPL is one that made a lower low, higher close, and close above the open, and the top half of the range. I'm not sure that this is a target for me.
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One principle of technical analysis is that previous resistance may become support, or vice-versa. Here the Commodity Research Bureau Index might show that quality.
___________________________________________________________It's all good? Winners live above the 200 day average and losers live below. Walmart (WMT), with a partial Gann 3 day chart...with a breakdown, retrace, and close right on the prior breakdown point. Wow.
____________________________________________________________The US dollar weakness didn't provide enough support to give the market as much juice as many would have liked.
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Bottom line? Not much changed, and the market climbed the greased pole of worry. Speculation: the dollar weakness continues, under the direction of the powers that print.

Good trading and great risk management to all.

Educational use only. Never intended as investment advice.

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