|
PureBytes Links
Trading Reference Links
|
Last week I advised the possibility of a bottoming in the major markets and
a buy condition for the SMH and semiconductor stocks. I also indicated bonds
were near a reversal and would decline.
The result was a moderate decline in bonds and a meager three day rally in
SMH and most semiconductor stocks. Agile traders were able to take some
small profits on these moves.
I advised others that the rally in SMH would likely last only three days and
another decline would follow. Today, reacting to the INTEL report, SMH
gapped down and semis were weak. The declines, however, put most of the semi
stocks in a setup condition for another buy signal for tomorrow or Friday.
The NASDAQ is in similar condition.
The market structure that has evolved since last week no longer supports a
significant up move in the markets.
I expect these countertrend rallies to be weak and new lows to be recorded
in all markets. If you daytrade you can profit from these short moves but
holding long positions longer than three days will likely be harmful to your
financial wellbeing.
Jim White
----- Original Message -----
From: "Jim White" <jwhite43@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, July 06, 2004 5:49 PM
Subject: market bottom
> The equity markets appear to be in the last day or two of a bottoming
> process. I expect to see a lower range day with perhaps lower lows
tomorrow
> and a reversal on Thursday. The semiconductor holder, SMH, flashed a buy
> signal today and nearly all the semi stocks I cover are nearing strong buy
> signals so, is often the case, semis may lead the way up.
> Bonds are in a sell condition so funds coming out of bonds could stimulate
> the rally.
> I have no reliable way of determining the extent of a reversal but my Near
> Impulse forecaster indicates the possibility of a multi week rally.
> Positive geopolitical news could also reduce fear and help fuel a rally.
We
> shall see.
> Jim White
> Jim White
> PivotTrader.com
> Home of the Near Impulse Forecaster
>
------------------------ Yahoo! Groups Sponsor --------------------~-->
Make a clean sweep of pop-up ads. Yahoo! Companion Toolbar.
Now with Pop-Up Blocker. Get it for free!
http://us.click.yahoo.com/L5YrjA/eSIIAA/yQLSAA/zMEolB/TM
--------------------------------------------------------------------~->
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/realtraders/
<*> To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|