Monday, November 22, 2010

Holding the course

It's difficult, after a day in which the Dow was down well over 100 points at the low, to keep my long hat on, and yet, if you look at the way things ended up on the daily chart, down only 25 points, you see that this still leaves us above the upper line of the new ascending RTC trend. I'm almost reluctant to do so, but I just have to leave the green arrow up. Today's action leaves us a long way from bearish territory.

I also note that today's declining volume was lower than yesterday's rising volume. That just leaves the shape of today's candle - a hanging man if I ever saw one. But all in all, I think that the RTC and the indicators, which are all still rising off their recent bottom, point to higher prices ahead.

And again, we're talking about swing trends here. If you're a day trader, there's not much here for you. After today, it would take a one day loss of 175 points or four more days of sideways action to bring us to a bearish setup. That's the time range we're talking about.

No trades today. Of the eight stocks in my low price/high yield portfolio I wrote about the other day, four were up, two were down, and two were unchanged and cumulatively, their net value rose 10% today.

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