| Market Direction with Ed Downs  |
 Dow 15 Minute Chart  Dow 60 Minute Chart | ||||||
DownmoveDow breaks consolidation to downside, trends lower to the Close.From prior commentary, "...A break either way from the consolidation will dictate the index's likely direction; a downside break at 8,770 will likely push the index back down, while a break above 8,860 will extend the current upmove..." The Dow traded sideways within the boundaries of the tight consolidation noted in yesterday's commentary, however a downside break late in the session fueled a sell-off to the Close, seen in the 15 Minute Chart. Click Here for full Article | |||||||
| NYSE Chart of the Day with Jeff Drake CRE has fallen through its upward trendline, but we want to point out the good confirming move, which is the lower high. Notice that earlier this week it made a peak just below the previous peak of early May. This type of formation provides a good entry point for reversal trades. |  Carramerica Rlty Corp | ||||||
NASDAQ Chart of the Day AEIS has moved up 20% this week, and the penetration of the resistance at 11 is a good sign that there is more upside potential. We like the "smooth" nature of this chart as well, which makes trade management much easier. |  Advanced Energy Inds | ||||||
Lesson of the Day
|  Archstone Smith Tr | ||||||
Industry Commentary The long candidate groups in today's posting are primarily technology groups reflecting the selective follow through from Tuesday's strong move up. While several non-technology groups continue to look strong, the dynamic charts are primarily among the tech movers. I mentioned yesterday that the Oil groups were beginning to stall out after a long uptrend, and encouraged you to "Check out the Real Estate group for a good example of an early rotation from highs." I re-encourage to check out the Real Estate group charts today to further illustrate the dynamics of a group reversal. This is a phenomenon that occurs over and over in the market and you can profit from identifying these opportunities. If you are reluctant to go short, which you shouldn't be, at least don't be long in a group that is demonstrating widespread and significant selling pressure. We added the Oil Minor and Gas Utilities as reversing short candidates today. I am convinced that the Oil groups will follow through to the downside, the next few days will determine whether this is a pull back or a reversal. But if you took profits today on Oil stocks you can always re-enter on a bounce. The markets are lively and as long they move, money can be made. Steve Belknap | |||||||
MfG, ZiZo
