Something to Consider
Despite the market's inability to break out above the 2004 highs, there is still a window of opportunity for further gains. But I'll argue the potential for an important turn in the market is increasing. There are two dates that could mark a potential change in trend. The most important is still more than a month away: April 25, 2005 represents the 639th trading day off the October 2002 low. Why is that significant? Because the bear market decline from top to bottom lasted 639 trading days.
Another is March 18 - option expiration. The table below illustrates a fairly positive bias into the March expiration and a negative bias thereafter. If Hoofy can manage a breakout above the '04 highs, look for a potential turn surrounding the expiration.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views 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 individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles 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. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter