The market didn't just have a down day Friday it had something it hasn't had for weeks now, a truly DECISIVE day in which volume was huge and the chart patterns were altered significantly-could it be quadruple witching? The Health Care Debacle? Etc,etc,etc..... It doesn't matter. Volume/Price relationships were Volume UP and Price down which indicates panics sellers. On Wednesday last week I posted an article about the market's coming reversal-there were so many signs and signals that I said, if we don't see a reversal, we'll need to re-think technical analysis. Here's the post:
As for trades from last week, many are still viable so look at those as well, especially FCX and CAR, it's not too late for those shorts. I'd advise giving yourself some room on the stops, maybe more then what I suggested-turn-around tops can be volatile, but I think we are in for a trend down. If you have my Trend Channel Indicator-now's the time to use it for stops to lock in profits, if you are unsure of the correct settings for your position, email me.
Remember what I said last week because you can use it in the future, "The market's initial reaction to Fed statements is almost always the wrong reaction and it usually reverses within a few days" and that is exactly what we saw last week. It applies to major government announcements as well, but more so to Fed policy statements.
As usual, any questions, please email me. Remember, unless you are getting slaughtered, stops are on the close, not intraday and never post them with a limit order, keep them in your head.
If your portfolio is significant;y long, email me, there are a few positions you can jump into to hedge it out for a bit until you can clean it up.
Have a great week.
Remember to scroll down to the bottom of the list.
