Sunday, February 10, 2008

NASDAQ 100

Follow Me on Facebook Follow Me on Tweeter

I would stay on the same as before – it’s difficult for me to believe that the market will crash further. After such strong oversold indicators…

Going back to my 60-day chart I may see that NASDAQ 100 is nice by showing that we may expect further recovery. However, there are 2 negative points on the S&P 500 and DJI that are not seen on the NASDAQ 100:

1. Advance decline volume and issues oscillators are flat after being at higher levels – it would be nice to see rising.
2. VIX (Volatility index) is still at high levels – it would be nice to see it lower.
The biggest positive sign for me is that we do not have such high volume as we had in period from January 15 until January 25, 2008. For me, this is indication that the main wave of the panic selling is behind…

NASDAQ 100

Whoever is reading this blog, keep in mind that I could be wrong; the market is extremely volatile over the last 6 months.

Even if I believe in the coming recovery it does not mean that it’s going to come tomorrow. On my opinion, the best choice for mid-term traders is do not play short and maybe stay in cash waiting for up-trend confirmation indicators before opening a long position.

I think it could be a good time to look for underpriced stocks… again, I could be wrong…

2 comments:

gary said...

Can you update more often??

TraderJoe said...

I’m sorry, it’s time consuming. So, far I can make post on week end only. During the week it could be short posts only without chart snapshots…