Wednesday, May 20, 2009

Stock Market Video - Wednesday Market Summary - 5/20/09

Hi traders. Here's a short video going over some of the "warning signs" that I see popping up with this market and why I am recommending caution on the long side. Now, today is not the end of the world for the bulls. Heck, the Nasdaq and S&P are still above their 9 day moving averages. However, when you start seeing things like heavy volume selling and leading groups top out, along with loads of bullishness in the crowd, you start to become cautious. I included some short candidates to keep an eye on, although again I would not recommend just jumping full-blast into the short side here. If we are topping it will likely be a process, not an event.

I also forgot to mention in the video that if you are still looking for long candidates, gold stocks look decent after today - LIHR and AUY are two to focus on. Good luck Thursday.


To download directly, right click the above link and "save link as".

2 comments:

Anonymous said...

do you think UNG may be forming an inv H&S?

Rik

Mac said...

It has some work to do in terms of forming the right shoulder but it is a possibility. If you're interested in natural gas, this might be a good place to buy UNG with a stop below $15 or so. If it is going to bounce, this is the likely area with the 50 day moving average right here. Hope this helps.