Thursday, March 6, 2008

Charts to Watch

Here are some possible shorts if we do follow through to the downside tomorrow. Several of these are dependent upon sector breakdowns, so they are more charts to watch rather than act upon right now. I have not look at any longs yet but I would not enter any right now regardless.

PXD
MON
TRA
ARG
GHM
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

If you want to play the possibility of downward momentum, BOOM had earning tonight that missed expectations, and it has had a weaker-volume rally up to its 50 day moving average and is now starting to break down. Shorting here is not the best place but again, this could be a play if you are more short-term and if you're more of a risk-taker. I am also looking at the SRS and SCC inverse ETF's right here - SKF is the best, but too extended right now to have a relatively safe entry.

After thinking about today's action a bit more and what has happened the past few weeks, as a bear, I am starting to worry a bit about the jobs number tomorrow. Does anyone else have a feeling that we will "miraculously" get a great number, showing much higher growth? Everything is just perfect out there, right? There isn't any recession, just a slowdown, right? That's what all the Fed officials are telling us - I don't know how they do it with a straight face. Seriously though, how much will this number be cooked in order to prevent a major downsweep right here? We are at a very precarious position technically and a bad number could really put us over the edge of the cliff we are on right now, and I'm sure there are many people out there that realize this and want to do everything they can to stop it from happening. I know it shouldn't happen, but we all know it can happen. We shall see. Be careful, and good luck tomorrow.

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