Monday, April 21, 2008

Scans Confirm We Need More Rest

My scans aren't showing me many long candidates right now. Anything that looks good is extended, confirming my thoughts that we need some more days like today so we can rest and charts can digest some of the big gains they have put in over the past few weeks. I only have four candidates that I am watching and actually two of them I would not buy right now unless they can form a week-long handle.

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

My scans did nothing to change my mind about commodity stocks being super extended and in great need of a pullback. I don't know if this will happen or not. If it doesn't, I can still see a good chance of some climax runs being put in - check out some of the charts below and you may see what I am talking about.

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Although the overall market situation is still quite bullish, I just don't know if this is the best time to put more money to work. Wait for a little pullback, hopefully on lower volume, and get some support levels identified on your favorite stocks to be ready if we are lucky enough to get one. Good luck tomorrow.

Tags: , , , , , , ,

No comments: