Tuesday, January 11, 2011

No bearish trigger; uptrend resumed

Today's 34 point gain in the Dow brought us right back to the lower edge of the rising RTC I had abandoned yesterday, Since this is also a bullish candlestick pattern, I'm going to take a chance that the three days of declines before today were not in fact the start of a new downtrend. Clearly yesterday's bearish setup did not trigger today. So I'm returning the green swing trend arrow and looking for more upside over the next few days.


Today I bought some Frontier (FTR) at 9.42. It's looking oversold on a short-term basis and bounced off its 40 day MA today. It doesn't hurt that it's paying an attractive 8% dividend.

I also think I've found the pullback in gold I was waiting for. I bought AUY at 12.31. Actually, I should have picked this one yesterday as it was just breaking out of its downtrend and looking very oversold technically. But today's action just confirms that and I think it still has plenty of room to run.

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