Thursday, December 14, 2006

Thursday Wraps

Well I got that one wrong - I really don't know why a couple of thousand fewer people claiming unemployment benefits should have such an impact on the market but it seems to have done the trick. The DIA and the SPY had great set-ups today but the Q's and IWM both gave up after the first hour. I don't like the looks of the Q's because every single hourly candle had a tall neck (or what I call a steeple and you know what the steeples mean - end of trip).

I managed to get out in the fresh air today and play some golf so I didn't do much except dump my ORCL shares at COB. I dumped them for the simple reason that given an NDX run up by 19+ points it round- tripped to dead even. I am now holding some SYMC. I think that I'll close that position tomorrow and in fact go flat through the end of the year. We'll see.

The up/down ratio sits at 56% which is neutral but trending towards the bear. New 20 day highs are up to 811 and new lows are down to 270. These are not good numbers for an upwardly mobile market. The VIX is now 12% below its 10-day moving average and is back in single digits again. The Q's, IWM and GS all printed red candles in the final hour. But DIA and SPY didn't. So a mixed message there. And tomorrow is expiration day. Generally there isn't much volatility on expiration day so I expect tomorrow to be quiet. But you never know.

The magic coin gets to 37 and 27 having hit today square and for tomorrow --- tails - bear market. I think I agree.

No comments: