Thursday, January 24, 2008


The NASDAQ gave its confirmation of an intermediate term bottom today with the turning up of the fast line on the MACD.

Much like the S&P 500, the stochastics broke out today and confirmed a short term low at the very least.

Ultra short term, the put call ratio gave a caution signal today for short term long positions.
It did not give an all out short term sell but it is cautioning short term traders from overstaying their welcome.

Friday looks like it could be a consolidation day as the market has moved sharply higher from its most recent lows and the intra-day charts are starting to show a market structure that might need one last push higher or a turn lower.

Either way, Ultra short term traders should be looking to take some profits here.

Intermediate term traders can look to add to their allocations on any pull backs.

We currently have a 60% allocation to stocks and as long as things continue to look constructive, we will be bumping this allocation higher as opportunities present themselves.

So in a nutshell we have:

Short Term Traders - Take Profits or Tighten Your Stops Considerably
Intermediate Term Traders - Use Weakness To Increase Equity Exposure.

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