Today's afternoon rally was courtesy of a technical bounce as the S&P tested the December lows or neckline of the developing inverse H&S pattern. The pattern's not dead yet as we seem to be carving a deeper right shoulder than originally anticipated. On the S&P chart above, the green line represents the neckline and the blue is the shoulder line. Today's technical bounce came with volume so it is encouraging. Now we need to move back towards the shoulder line and hope for a higher high otherwise we'll have a failed pattern and a retest of the November lows not too far behind.After hours INTC gave some positive guidance and BAC is supposed to get more guarantees $100+ billion.
Tomorrow is OPEX (options expiration).
Percentage of S&P 500 stocks trading above 50 MA has been halved since beginning of January.
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Jim Rogers Interview on Stock Shotz January 15,2009
I am so pleased to have legendary investor Mr. Jim Rogers back on our show. Jim talks about anamolies in the markets today and the long term outlook for inflation. I asked him about future growth in China and whether or not the Chinese will continue to finance our debt. He argues that we are still seeing deleveraging and does not term the current situation as DEFLATION.
The interview can be viewed at www.stockshotz.blogspot.com
Playing the educational stocks (DV, APOL, ESI) -
http://chartsandcoffee.blogspot.com/2009/01/point-of-action-educational-stocks-apol.html
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