Thursday, November 27, 2008

Technical Picture - Tech Stocks Lead Thanksgiving Rally

Weaker data in pre-market (Durable Orders -6.2% vs. consensus of -2.5%; Initial Claims 4 wk avg reaches highest level since 1983) resulted in a cautious open but the pressure was short lived as the markets held above Wednesday's low/afternoon range floor during the early dip implying limited pressure. Strength in technology/semi provided initial upside leadership and commodities, energy followed. An afternoon bounce in financials helped the S&P extend its gains for a 4th consecutive higher close.

Equities close at 1:00 PM EST tomorrow.

From oversold to overbought in just one week. Expect some consolidation soon.




$USD consolidates after 3 consecutive lower closes. Need to see some follow through (a close below Tuesday's close to confirm the retracement).

Gold looks ready to move higher after 3 consolidation days. Oil is on fire. Have been day trading some Canadian energy names in the retirement account. My favorites are CNQ, ECA, NXY, SU, TLM. Failures lead to fast moves in the opposite direction and energy is a perfect example.

2 comments:

Paul Orion said...

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let me know if you have any comments for me.

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Jamie said...

Thanks Paul,

I like the motivation section with the speech by Steve Jobs. Keep up the good work. I'll check back on your blog in a few months.