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Last night while going thru some of my charts, some stocks appeared to show a
selling climax. In fact, a classic Edwards & Magee defined selling climax.
Last night's stocks included WalMart (WMT), Fed Express (FDX), LTV, Action
Performance (ACTN)
This morning I reviewed a number of bank, financial and brokerage stocks.
The following show possible selling climaxes:
BANKS: BA, BAC, BKB, CMB, FTU, MEL and PNC.
FINANCIAL: AXP, BNE, CCR, FRE, FNM and CFN
BROKERAGE: AGE, DLJ, HQ, MER, PWJ
There may be more in each category, but I only download a handful in each.
Notwithstanding the above observation, I am still very bearish. My earlier
comment on a H & S top on the DJIA with the neckline at 7400 and a trading
range between 7400 and 8200 still holds. The breakdown of the NASDAQ to new
lows last week needs to be reckoned with vis-a-vis the DJIA. If and when the
DJIA breaks below 7400, the next support is at about 6375 then 5200!!
Place your bets and take your chances.
Jim Barone
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