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.

4 comments:

Anonymous said...

Tim,

Thanks for more compelling charts. I've just about given up on LEH Bros., but PNRA has worked out rather nicely, wouldn't you say? Thank you for another money-maker. (Here's hoping CCL and UNP can join the downward party.)

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