Wednesday, February 25, 2009

I Found Three Really Nice Looking Charts

I found three great looking charts in my scans and wanted to point them out. Check them out below.

Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Oh, I forget to list the symbols for these charts. The first one is DOG, the normal inverse ETF for the Dow. The second is SH, the normal inverse ETF for the S&P. The last one is RWM, the normal inverse ETF for the small caps. So basically, if you turn the indices upside down right now, this is what they would look like. Not really bullish from where I sit.

After going through my scans, I found a lot of bear flag type patterns setting up in individual stocks. Right now, I think we are heading lower soon - I just don't know when exactly. I would prefer to get a little more of a bounce, but that may not happen. One more up day would give a pretty nice setup in terms of risk/reward and allow these bear flags I am seeing to form even better patterns. You still have to watch the news side of things, as supposedly the market tanked late today in conjunction with comments (or lack thereof) from Tim Geithner and President Obama. I realize that it is possible certain news or comments could spark more of a rally, but the longer this situation goes on without any clarity or any ideas being presented, I think traders are going to get tired of waiting. Be careful as always, but I still hold by my bearish outlook based on my scans. Below are some of the charts I am watching with their bear flags - again, some of these are just starting to form and could use another day or two of a bounce. Good luck Thursday.

Stocks to watch: AAPL, OZRK, BOH, DLR, EBS, XOM, HUB.B, ITRI, LPHI, MET, PRE, PNC, QSII, XLF, SCHN, SWS, VTR, and WFC

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