Sunday, May 11, 2008

Weekend Thoughts

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Here are some interesting charts that I came across while surfing the past hour or so:

All of them look like good setups. If this were April, I would not hesitate to jump on them if they met my buy criteria. However, it is now May, and the market is not the same as it was in April. Case in point:

BPSPX (not shown in the above chart) is at 56, and the last time it was this high was near the middle of Dec/07. The SPDR Trust, Series 1 (AMEX: SPY) could not close above the 200d SMA, which is still trending down. SPY has actually climbed 11% since the lows put in in mid-Mar/08. While impressively outstanding, it is unusal for SPY to move so much in so short a time. I guess what I'm trying to say is that my opinion is that such performance is not sustainable. MACD and ADX are showing signs of a potential change in trend.
If I were to play any of the stocks in the first chart, I would be going in with caution in mind and it might even turn out to be a daytrade instead of a 2 or 3day flip. If I do make another trade this coming week, you can catch it on Jaiku.

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