Thursday, January 25, 2007

Engulfed

What is with this crazy market? Don't get me wrong; a triple-digit down day on the Dow is terrific. But this market is heading for the nut house.

Over the past trading week, there have been two instances of big bearish engulfing patterns on the $NDX. Today's was a whopper. Having a superstar like EBAY up in the double digits at the open and yet have a wipe-out like this is really encouraging.


The $SPX bounced off that resistance line beautifully. The market still has no direction, though. It's neither bullish nor bearish. Just schizo.


The rest are straight-up short ideas. AMX:


AutoZone (AZO), still in the stratosphere:


Carnival Cruise Lines (CCL), approaching resistance:


Black and Decker (BDK):


Goldman Sachs (GS), finally getting a reversal:


LLL:


NutriSystem (NTRI), with its cup and handle pattern failing:


RTI:


Sears Holding (SHLD), also weakening:


Now for your occasional clip of the day! The world's worst weatherman. Brace yourselves.

6 comments:

Lauriston said...

NTRI looks like a GREAT short!

Long term: rounding top
shorter-term: head and shoulders
short-term: cup and handle reverse like you stated

finally we may be on to something. I just hope tomorrow we don't get a rally on "the excellent MSFT results". As I said on my blog, I think a rally tomorrow will make me SCREAM!! I am short via IWM/SPY puts and short DHI. japan down 122 right now i hope that becomes a bigger drop by Asia close

shiftpoint said...

I just want to point out that a bearish engulfing doesn't have that much weight unless it's at the top of the trend.

Rob said...

I just want to point out that a bearish engulfing doesn't have that much weight unless it's at the top of the trend.

Why dont you rip his paw off and feed it to a bull while your at it! sheesh...

Jan said...

In my article: Stock Market Turns From Bull To Bear
http://my.opera.com/prosperingbear/blog/show.dml/709055

I provide lots of evidence that today was "the day" for a turn from Bull to Bear; yes, what a change from yesterday where 4,698 mutual funds attained new 52-week highs, to so bearish a day today; the reasons being four fold:
First, a realization that the ability of corporations to consistently provide ever higher profits has peaked out.
Secondly, the market giving recognition to Ehud Olmert's calls for action against Iran; in times of international conflict money flows out of stocks and into gold.
Thirdly, the market caving-in to the reality of lower bond prices: a recognition that we have passed through Peak Liquidity; and that lacking a fresh quenching of liquidity, stocks will fall in value.
Fourthly, a tenet of Dow Theory: the transportation and industrial averages must move to new highs or new lows together in order for the trend to last; in as much as the Transports failed on January 19, 2007, the Dow must now move lower as well.

PB said...

Shiftpoint ... and exactly where are we now if not at THE top?

Also, today's sell-off was based on what? 2006 home sales??

How 'bout looking to the future and seing nothing but endless liquidity!!!

Come on, let's get this rally going!

Leisa said...

That poor guy. It was painful to watch.