Sent: Friday, May 09, 2008 10:14 AM
Subject: TTT Friday : We will stand pat on our positions and will
update at the close today !!!
Friday, May 9th. - Stock Trends, Charts, and
Commentary
One thing that I feel is very important to follow on
a daily basis is the action of the "core
holdings" held by Institutional Investors.
I feel it is more important than the DJI or any of
the other indexes in giving a true
picture of the markets. Notwithstanding the fact that over half
the market's volume is generated by Institutions and the fact that they have a
major
influence on what happens to the market.
Below is a two and a half year chart of the
Institutional Index that we post on our paid subscriber sites every day.
Give it a quick look and you will see a very clear picture of how the
index followed a clear up channel from 2006, started to break down by violating
the rising channel's support, and then started a very clear down channel ..
which we are still in.
So, what is the index telling us now?
The index has had a very nice rise in the past few
weeks, but this week it rose to its
descending channel's resistance line. Theoretically, it
could move up to a final test of its 50% Fibonacci retracement line ... or it
could fail to the downside after completing its test of the channel's resistance
line.
This is not
just any level we are at now .... it is a crucial pivot
point where the markets will either move forward or resume the
channel's down trend. One thing you want to do, is always be
investing in the same direction as the Institutional trend and never bet against
it.
(Feel free to use the link below to forward this
page to a friend or colleague.)
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