Monday, March 24, 2008

A Few Charts to Watch

I really don't have a lot of charts to show because after doing my scans, I didn't see much on either side of the market to get excited about. I think I discussed how I use Telechart's balance of power (BOP) indicator to help identify longs that are likely to make big moves, and how most of the patterns I see these days are just average patterns with average (yellow) BOP levels. I continued to see that tonight in my scans. I put a few charts below that I am watching but I don't plan on doing any buying right now. I am hopeful that some of these charts will start to turn green and show more accumulation - sometimes rallies just start off slow and the new, fresh leaders start to develop after a few weeks. Maybe that is what we'll see with this rally - I am hopeful of some popping up soon. It's the new leaders where big money is made, not older, beaten down stocks rallying off their lows, which I continue to see. If you really want to get in on the action and can't sit still, then index ETFs might be your best bet. Cash, however, is still a good bet as well. Good luck tomorrow, and remain careful!

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.


Richard said...

You made some good points in this article, I'm glad I stopped by your page, this would be my first time. I'd have to agree that hot stocks may emerge from this rally, but this rally hasn't been confirmed yet, not until then will I go long.

Anyways, keep up the great work!

Richard from

Give me a shout if you want to be a guest writer on my site ;)
Also, I'd be interested in exchanging blogroll links with you, let me know.

Anonymous said...

Can you point me to when you made your comments regarding BOP as an indicator of big moves. I would be interested in reading them as I have difficulty in properly interpreting BOP. Thanks.. said...

You have got to check out Nike (NKE). I hate the shoes but the chart has recently undercut a previous base and now has just broken out of a 1st stage base. It is an institutional quality stock and could be a new leader.

Mac said...

Good call - I have NKE in my watchlist - it needs to rest around here and maybe form a handle here to be buyable, but the chart looks good overall. I see some nice positive divergences in my Telechart chart. I usually stay away from large caps just because they are usually slow movers, but I will keep NKE on the watchlist and see what it does from here.

Mac said...

The post is March 12. If you search for "balance of power" it will be the second entry. I posted a chart there that shows how green BOP in a chart often is a precursor to a big move. I don't make it too complicated - basically if the chart is mostly green, that's good. If there is a lot of yellow or red, I usually will pass.