The Upside Trader writes: The tape got throttled on Friday
and the baby went out with the bath water. Mr. Market was an equal opportunity
seller and the market Gods are rarely partisan on that front. All the sectors
visited the wood chipper, but energy ($XLE) and crude were particularly
brutalized. I remember when lower crude was good for the market, I also
remember when higher crude prices were good for the market. It all depends on
that place in time I guess.
The jobs number wasn’t good and we were fresh off some tepid
(at best) economic reports. Europe sort of ruled the week, as the markets got
all twisted about the Sarkozy election this weekend. The market was looking for a reason to let
some air out, and it did.
AAPL is falling apart, but the volume last week was still
below the 50 day moving average. It also managed to close at some trend line
support as you can see below. It also managed to go back and fill the earnings
day gap on Friday. If it doesn’t holdhere, then your next probable level is the
550 area.
Everyone wants to know (including me) if this is the start
of a disaster for the market or just another gift to buy “stuff” cheaper. I
don’t have the answer, but watching your trendlines (use your daily AND weekly
charts) will help. So far, every dip has been a buy, but that trade only works
well until it doesn’t….
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