Stocks Break Down
What an ugly day in the market today. I've been bullish on the NASDAQ and was actually long the Q's from a few weeks ago based on market sentiment and relative strength.. Today I liquidated my long position at a loss as the NASDAQ composite fell through support.
If you look at the above weekly chart you will notice a bearish head and shoulders pattern on the NASDAQ composite which was confirmed today by the breaking of the neckline. I'm not about to short stocks here because historically speaking it's not wise to sell stocks into weakness but I did however get out of any long positions I had on.
In my opinion many of the major indices broke down through key support levels which is a sign that the bears are clearly in control of this market. Right now my strategy is to see how stocks behave on the next bounce (rally). I'll remain on the sidelines for a little while and just observe. Sometimes no position is a good position.
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8 comments:
Hi Kevin:
Just wanted to remind you of the upside target you have for gold. This trade still seems to be be doing well but I wanted to see what you thought of the upside target.
Thanks!
rb
I'll post a chart tomorrow..I didn't forget
Kevin, thanks! Have a great evening.
FYI
Quite a few Break outs of symetrical patterns.
OF the ones I follow!
GOOG/BIDU/IBM/QQQ/DJI/GS
?close but no cigar CHL/FCX
Positions! all spreads/short GOOG/BIDU long CHL
T
I think it's important to keep at least a small portion of portfolio exposed to benefit from a possible sharp 8%-12% decline of the markets.
Kevin,
The SPX just touched the 89 weeks MA which has been holding well for the past 3-4 years. We should see whether this MA can hold on this time.
Chiu
Kevin,
You get out of your QQQQ position, are you still long Goog? Thanks a lot!
I never was long GOOG
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