This is the NDX weekly chart ending 9/24/2010 and it's beastly! I don't need anything else but price action, volume and time. The news, the blogs, the tweets, they can all shove it! The charts are saying this market is going higher. Can they change their minds on Monday? Sure, but for now they are saying higher.
This is the Dow weekly ending today 9/24/2010 and it has bussed through some major resistance. I like to look at the weekly chart at the end of the week, the monthly at the end of the month, daily at the end of the day. I like this because all the time frames tell a story and right now that story is that the market wants to go higher. You'll hear people say we're over extended, overbought or we've gone too far too fast. All that may be true, but when the pull back comes don't let the talking heads tell you the rally is over, let the charts tell you! A crazy high down side volume will tell you all you need to know.
With that said I do expect a pull back of some sort because the market pulls back and tests levels it has broken through. I expect the market to pull back, test those levels and continue rising. I expect October and November (especially if the GOP takes control of the house) to be nice up months. If the GOP doesn't take control of the house I think that will end the rally, simply because higher taxes will be a given and people will rush to take profits (and losses) this year.
The equity out flows all but assure that congestion is a non factor. I think.
I'm long EMC, APD, BSDM and a Canadian gold and silver ETN (exchange traded note) CEF, with APD being my largest holding and EMC being my newest (today) and smallest holding. I'm not using any margin but I plan on buying every dip in EMC and BSDM so I'll get into it soon enough. I don't like to hold more the 6 stocks as I don't have a major amount of money and it gets me spread too thin, so I have two stocks on my watch list, which ever hits the buy point first is the one I'll buy. The two are EGO with a $20.33 buy point and TSL with a $28.97 buy point.
EGO daily with a red line marking the buy point. 
TSL with red line marking the buy point.
 |
| TSL looks like it'll win the race to the buy point, but looks can be deceiving as hell. |
I'm sorry my posts have been sporadic at best, but I plan on picking it up with a few book reviews and some other things. I don't think my opinion matters all that much to blog every time I have a thought, not only that, I would hate for one of my wrong thoughts to influence some one who's on the right track trading wise and have them second guess their trades. AXTI shook me out something terrible and my mistake was buying too much in my initial purchase, so when it turned against me I got shook easily. That made me tip toe into EMC today and I feel good about my entry even though it pulled back a bit after my second buy. I tweeted my second buy and it seems like when ever I tweet a buy it turns against me. It's probably me. But that makes me not tweet my buys as much, so if you follow me on twitter and I tweet a stock I'm in I've probably been in it for a while.... Anyway, watch the charts, listen to the charts, not the talking heads.
Until next time, Do Some Homework, And Make Some Money.
