Thursday, April 3, 2008

Very Little Seen in My Scans

For the second straight night, I found very few longs that interest me at all. I have some below that I am watching but these are all marginal plays at best in my opinion and I would keep these positions small, at least with the current state of the market. If the market starts moving forward with any strength, then these stocks will likely follow.

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

I am not really thinking about shorting right now because the market has yet to show it is ready to start heading down again, and I don't want to get back in the game of predicting instead of reacting, but I did notice in my scans that many of the formers leaders of the past bull market that have been beaten down so much have now rallied back up to some major overhead resistance levels. I mention this because in William O'Neil's book on shorting stocks, he states that it often takes 3, 5, even 7 months after the exact top of a stock for a good shorting point to appear. I just found it interesting that so many of these stocks are hitting the same type of resistance, and I will be watching to see what they do over the next few days. Most of these rallies have come on weaker volume than the selloff volume.

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Tomorrow's trading should be influenced heavily by the March jobs report. I can't imagine that trading will be as mellow as it has been the past two days. The indexes are coming upon what should be some heavy resistance, so I am interested to see how the market deals with these areas (12,750 on Dow, 1400 on S&P 500, 2420 on Nasdaq). Tomorrow will likely be volatile so be careful out there. Good luck.

No comments: