Thursday, November 02, 2006

Five in a Row

Five down days on the Dow in a row. Nice. Let's hope for a sixth tomorrow. A solid week of downers would be sweet. Of course, all eyes are on the election next week. The market can have perverse and surprising reactions. A huge victory for the Dems would supposedly damage the market. But let's remember Clinton's 1992-2000 tenure wasn't exactly bad for stocks.

My $MSH puts are slowly gaining strength. There's a lot of room to tumble, but there's no earnest downward momentum yet.


The same holds true for the Russell 2000 ($RUT). Today's "spinning top" candlestick pattern indicates uncertainty.


For anyone bearish on gold, check out AEM. It looks really vulnerable to a swing down.


FCX is a great put play, since it's got a tight stop and there's so much room on the downside. Plus the supporting trendline seems to have been pummelled into irrelevance.


HYDL is a honey of a head and shoulders pattern. Full retracement has been completed.


Retailer Nordstrom (JWN) has decidedly busted through its supporting trendline and is high enough to be a relatively safe play.


lufk


The fog will hopefully clear by next Wednesday. Thanks for taking the time to stop by.

3 comments:

zstock7.com said...

ok tim,
I’ve seen cof tank, you called it.
I’ve seen oih tank at the h&s ,
now I see why you like h&s so much.
I’ve seen leh tank, you called it.
are, icf ,ati, …all tanked….
I concur on hydril….64/65
great entry price…h&s rules...

Nov 6,7,8…..
market uncertainty…..
bears best friend…

z-stock
apol sttx adm

Andrew Wright said...

Coulda Shoulda Woulda..... I had my hand on the mouse for Whole Foods @ 65.... boy am I ticked. Grrrr..... it's like the last two months of constant up have done damage to me, mentally. haha.

I'm selling those SPY calls I yesterday on weakness. I think this rally this morning fails at which point I will look for a couple quick trades....

Tim Knight said...

"Today, one of my daily searches in the old toolbox is bringing up crap as well... "

I can't really help on old toolbox stuff. On new toolbox stuff, just drop me a line - tim.knight at investools.com