Friday, May 23, 2008

Tuesday Playbook

Just a guess...
DOW - drop on the open 100-150 points, then reversal and attempt to go up to 12700 area in few days, resuming downtrend after that.
Same ( with different "numerical" targets) goes for S&P, NASDAQ, RUSSEL.

Commodities related ( SLX, DBA, DBC, USO ...) will resume uptrend
Oil Services look really interesting - I think the break is in order, no matter oil up or down, OIH had few big fat full bodied black candles which for my unsophisticated mind indicates steady selloff - and institutions do not stop selling that easy.
Here is a pretty picture of SPY in descending channel with mechanically generated buy/consolidation and sell/consolidation signals. ( weekly and 3 days timeframes)

Have a good 3 days weekend, remember fallen soldiers, be smart and don't let anyone to fool you and force to fight for other people money.