Monday, December 08, 2008

Technical Picture - Follow Through

The U.S. markets opened with a gap up following President Elect Obama's comments on Meet the Press regarding big stimulus to get the economy moving again. They got a second boost midday on the news of a bailout for the auto makers. A steep 1.4% drop in the $USD sparked buying interest in commodities . Oil rose 8% to $44.05 per barrel.

In the end, the S&P 500 rose 3.8% on volume that was modestly above average. The index has posted a gain in nine of the last 10 sessions and is up 22.8% from its multi-year low reached on Nov. 21. Watch for resistance at the 50 DMA (930) and the round number 950.

Three chip makers came out AH with lowered guidance TXN, BRCM, and ALTR. Futures trading just modestly lower.




2 comments:

Jim said...

Two inverted C&H patterns today were DIA (the DOW) and FSLR. I was stopped out of DIA before reaching 100% (late in the day following big retracement up), but FSLR cleanly hit 100% and eventually went for more (without me).

Jamie - did you participate in either of these?

Jamie said...

Congrats Jim,

FSLR was the #1 stock on my WL for weakness. Unfortunately, I missed the inverted C&H. I did get a short in the Nasdaq futures, but they held the ORL as support. Most of my trading was on the long side - X and AGU.