You can't afford to invest your ego in any position in the market. If the market moves against your position, you need to react quickly.
I do not believe in predictions, only in probabilities.
January 30, 2003
The primary trend is down.
The Nasdaq Composite fell 2.6% to close at 1322. The next major support level is at 1200.
The primary trend is up.
The S&P 500 lost 20 points to close at 844. The index appears headed for a re-test of support at 768.
The Chartcraft NYSE Bullish % Indicator is on a bull correction signal at 48% (January 29).
AOL Time-Warner report a record $US 98.7 billion loss for the year, writing down their investment in AOL and cable divisions. (more)
Rising claims for unemployment benefits signal a weakening labor market. (more)
New York (16:45): After a short pull-back to 362.00 spot gold has soared to $US 370.80.
The 2915 support level is likely to be severely tested over the next few days.
Slow Stochastic (20,3,3) and MACD (26,12,9) are below their signal lines; Twiggs Money Flow signals distribution.
Last covered on October 3, 2002.
SIG has been in a stage 3 top for the last year after a completed double top pattern at [A] and [B] was followed by a fall back to 3.50 at [C]. After a lower high at [D], the stock has been moving sideways, ranging between 3.50 and 4.30.
Recently, SIG broke its long-term trendline at [J] and Twiggs Money Flow signals strong distribution [J] after signaling strong accumulation for more than two years.
Relative Strength (price ratio: xao) is falling and MACD is bearish.
For further guidance see Understanding the Trading Diary.
I do not allow my possessions - or my prepossessions either - to do any thinking for me.
That is why I repeat that I never argue with the tape.
- Edwin Lefevre: Reminiscences of a Stock Operator (1923)