Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

The Morning Cup of Jo

By

I'll find some action somewhere !!!

PrintPRINT


The night before last Hoofy and his "Bull" friends stumbled out of Birdland just after closing. He felt so horrific the next day, yesterday, he could barely make it to work. By 1:00 in the afternoon he decided to go home and that's when all hell broke loose.

When the Dow broke 10,420, the latest relative support set back on January 29th, it was a straight drop-off. The first thought was the prior support of 10,360 would hold, but to no avail, off she went. The volume on the NYSE accelerated past the 50-DMA by 13% - the highest volume since February 11th.

Following the break came a lot of talk (banter) about the individual sectors within the markets and what may be holding, what's left of support, up. So today, instead of revamping the brutality of yesterday, I thought I'd keep my banter short and show what I would consider the Crazy 8 - The major indices left in the proverbial deck. Or better put - the ones left in the 'Above 50-DMA' club.

Whether you're friends of Hoofy and looking for longs, or friends of Boo and looking for the next possible shorts, these sectors merit a look either way.

1) The AMEX Biotechnology Index

You'll notice it's keeping the ST Trend and still well above the 50-DMA.
You may also notice the RSI and Stochastic are acting fine and no current signs of divergence.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

2) The AMEX North American Telecom Index

Here may be a little more risky for you bulls. However it's still holding on. You'll notice the RSI and Stochastic are showing divergence and if it breaks the ST Trend it will also be the 50-DMA.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

3) The PHLX Housing Sector Index

This one is easy - all clear on the western front. Also you'll notice a Bottom Stochastic Divergence prior to the breakout of last week. However, there is a possibility it will pullback and retest the Floors & Ceilings.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

4) The CBOE Oil Index

Looking fine for now but could also retest the ST Trend and the 50-DMA.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

5) The S&P Retail Index

Once again, a possibility of a retest, not only of the BO (break out) but the ST Trend and the 50-DMA.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

6) The AMEX Broker/Dealer Index

OOPS - Stuck one in that just fell out of the club. This one speaks for itself. Notice the Stochastic Divergence.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

7) The PHLX Bank Index

So far so good. Needs to keep its ST Trend and 50-DMA. This one could be a major player in any further destruction in the Major Indices.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

8) The AMEX Pharmaceutical Index

This one's had better days. You'll notice it's currently holding the semi-angled Floors & Ceilings support but it's already broken the 50-DMA. I mention this one for another reason (save the best for last). Yesterday on Buzz & Banter I had a question about this index building Dandruff. To help illustrate my answer I put the horizontal line in the graph.

My belief is that there is a very small Head & Shoulders Top (started in January) that could be breaking right now. However, we have to look at the bigger picture, which is a larger H&S Top started back in December. This pattern is only partially complete - it still needs to go down to the neckline and build the right shoulder.

WONDA Copyright 2004 William O'Neil + Co., Inc. All Rights Reserved

I'd like to leave you with one IMPORTANT fact. None of the indices shown above have volume associated with them in their graphs and as a techy, this is the most important indicator other than price. In other words, make sure when looking at the individual equities, making up these indices, you check for light pullback volume and/or large break out volume.

Until next time...

KAT

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely= reflects the analysis of or opinion about the performance of securities an= d financial markets by the writers whose articles appear on the site. The v= iews expressed by the writers are not necessarily the views of Minyanville = Media, Inc. or members of its management. Nothing contained on the website = is intended to constitute a recommendation or advice addressed to an indivi= dual investor or category of investors to purchase, sell or hold any securi= ty, or to take any action with respect to the prospective movement of the s= ecurities markets or to solicit the purchase or sale of any security. Any i= nvestment decisions must be made by the reader either individually or in co= nsultation with his or her investment professional. Minyanville writers and= staff may trade or hold positions in securities that are discussed in arti= cles appearing on the website. Writers of articles are required to disclose= whether they have a position in any stock or fund discussed in an article,= but are not permitted to disclose the size or direction of the position. N= othing on this website is intended to solicit business of any kind for a wr= iter's business or fund. Minyanville management and staff as well as co= ntributing writers will not respond to emails or other communications reque= sting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

 

 

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE