Thursday, January 12, 2012

Market update

GOOG has been in a VST uptrend since I posted. TZOO broke out after my post. I hope you took advantage of my posts to play the names. 

I have charts of SPX, OTC/ NASDAQ/ COMPX, DJI, NDX for you today. We are at/ close to a top rather than a bottom. It would be prudent to stay in cash for the ST (swing traders) or have tight stops if you are long. I have no indication to sell short though. When I mean close to a top, do I say that we will see a big/ small correction? Don't know at this time. We could consolidate/ sideways or see a correction. Either way, since the cycle seems to be topping, follow the above suggestion. Though I have charts of major indices below, since DJI has been leading this cycle I will use that as an example. We could break the trendline upwards, pause and then breakdown or we may not go above the line as you can see we touched the trendline already.

The key point I would like to make is both NASDAQ, SPX are lagging DJI which doesn't bode well for the market in the Intermediate term. When there is greed in the market, the small caps and the NASDAQ always leads. Lack of leadership means caution should be exhibited even though we may still be in an uptrend.

Subscribe here and follow by Email