Sunday, November 16, 2008

No Clue Where We Head This Week

After going through my scans, I really do have no clue as to what will happen this week. On Thursday, I was fairly confident we would put in a decent short-term bounce. Around 2:30 Friday, I was even more confident that was going to happen. The close puts everything in doubt for me. My individual charts really gave me no clue as well. I am seeing no new setups - short or long. I pretty much have the same watchlist on both sides of the market that I have shown in the recent videos. I will say my potential long candidates now look worse that my potential short candidates do.

Futures are down right now but we all know that can change in a matter of a few minutes these days. A gap lower would take us below intraday support from Friday and Thursday as well so I assume it would lead to some testing of lower levels. If the lows from Wednesday are breached, then perhaps we move lower and the reversal Thursday loses even more of its credibility. The numbers I would watch are 850 on the S&P and 1500 on the Nasdaq. I don't know about shorting here, but I might think about it if we open lower and break these levels. Stocks I would watch include HGT, RRC, HK, GDP, CHE, SQM, CLHB, SYNT, CINF, OTEX, GMXR, and KGC.

Sorry for no charts, but I really don't have any to put up. I know I have said this quite a bit the past four or five months, but I don't expect to do much tomorrow and maybe even this whole week. I was quite excited Thursday, but Friday's close destroyed most of the interest and hope I had in this market. It is virtually impossible to make money consistently right now. I read on another blog this weekend (I can't remember which one) that this market is so volatile that moves that used to take the major indices one to two weeks to make now are routinely made in the course of a few hours or less. In conditions this volatile, the best trade might be no trade at all. We shall see. Best of luck next week.

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