• 825 days Will The ECB Continue To Hike Rates?
  • 826 days Forbes: Aramco Remains Largest Company In The Middle East
  • 827 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,227 days Could Crypto Overtake Traditional Investment?
  • 1,232 days Americans Still Quitting Jobs At Record Pace
  • 1,234 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,237 days Is The Dollar Too Strong?
  • 1,237 days Big Tech Disappoints Investors on Earnings Calls
  • 1,238 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,240 days China Is Quietly Trying To Distance Itself From Russia
  • 1,240 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,244 days Crypto Investors Won Big In 2021
  • 1,244 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,245 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,247 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,248 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,251 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,252 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,252 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,254 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

Resistance is Broken

Intraweek Alert
11/14/2006 7:38:31 PM

Last week I sent out an intra-week alert suggesting we would start issuing long stock recommendations more often, until the uptrend was broken. The stealth rally did occur and appears to be leading the way upward.

Note: Thank you to all of you who responded to my intraweek alert. I received mixed responses from subscribers who welcomed the idea of some short term trades, and others who were happy that recommendations weren't being made with the thought that it is better not to trade, than to trade and lose. I will try to satisfy both by wading into the long trades slowly to minimize risk of a sudden downturn.

I also suggested the markets might move to the downside Thursday morning, and they did. However, resistance has been broken, first yesterday with the QQQQs moving to a new high for the year, and today with all major indexes moving forward. The bulls are willing to commit the capital and keep buying into this rally. We need to look for momentum plays until this rally breaks, rather than pure reversal plays.

With that said, I was going to recommend a long entry into QCOM this morning but for the immediate equity market sell-off at the gap up open. In hindsight, it would have been a great entry point, but alas...

We need to exit our SPY position tomorrow as the strong volume today indicated this break through is likely to continue. This level ($139) is likely to act as support as it acted as significant resistance for awhile. An exit at around that price would be desirable. I am also going to look for a long trade entry to recommend as well.

Please feel free to send emails with any questions you may have.

Regards and Good Trading,

 

Back to homepage

Leave a comment

Leave a comment