BUSTIN' OUT

BREAKING NEWS: Dow breaks 13,000.

Does any technician care about Dow 13,000?

Anyway, price looks like it's bustin' out, but the Nasdaq "internals", momentum, and volume structure look like today's top's already in at around 11:00am. That's not the only problem.

The Transports, among other things, is also leading the way down and on the verge of testing last week's weekly low.

Good trading, boys.

Since we're talking about inter-market, here's a couple things I look at regularly...

The Dow Jones and the Dow Jones Transports



The NASDAQ and the NASDAQ Transports

Thanks for the charts!

And, the Transports just breached last week's weekly low, 5156.07. One of my "windsocks", INTC has now dropped more than 1% making consecutive new ID lows.


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Welcome, BT. Forget about Julia Chatterley, I know you've also got a major crush on Silvia Wadhwa, who's reporting for CNBC from Frankfurt regularly.

And, the Transports just breached last week's weekly low, 5156.07. One of my "windsocks", INTC has now dropped more than 1% making consecutive new ID lows.


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Welcome, BT. Forget about Julia Chatterley, I know you've also got a major crush on Silvia Wadhwa, who's reporting for CNBC from Frankfurt regularly.

Note $BTK below 20 ma now also.

One thing that is very important that I want to point out is the 50 day moving average on the transports. How do I attach a photo from my local computer? Here is the link to see the transports sitting right on the 50 day moving average. It will be interesting to see how this market closes

One thing that is very important that I want to point out is the 50 day moving average on the transports. How do I attach a photo from my local computer?

Here is the link to see the transports sitting right on the 50 day moving average. It will be interesting to see how this market closes

For those of us that are not paying customers here, we use ImageShack service to upload our charts. After that, you can provide a link or use the "Insert Image" button to paste the image URL. It's pretty easy.

BREAKING NEWS: Dow breaks 13,000.

Does any technician care about Dow 13,000?

What comes to mind is babies and hot stoves. The baby sees the stove and he must touch it. When he does it burns and he recoils in pain. But sooner or later his baby brain forgets the pain and he must try again. Of course 13,000 is the ever present obsession of the hairless monkeys with the fact that they have 10 fingers.

In conclusion... So, while the "internals" of the Nasdaq topped out at around 11:00am, price went on to a higher high minutes after noon - see my original comment above posted at around 1:00pm. The non-confirmation resulted in lower Nasdaq closing despite the oversold mean reversion in the final hour. Is it just an aberration, pure luck, or is it a return to "normalcy"? Had the close come near the noon high, this would've been one of the best QQQ trading sessions of late with 1% swing each way. Overall, it's still a good day for QQQ day traders. The cat's already out of the bag even though things appear unchanged. Later... [EDIT] Current daily poll shows nearly 62% bearish for tomorrow. We need some bullish votes ASAP.

Edited by TechMan, 21 February 2012 - 07:10 PM.

Today we have Doji #22. Like I said, I wouldn't miss it if I don't ever have to see another Doji again for the rest of my life. Two thirds of trading days since the New Year are either Doji's or members of the Doji family. I've yet to find anything as peculiar during any 34-day period in the history of the S&P 500. Seriously. BTW, if you're annoyed by the Doji laden indexes, give individual stocks a try. You'll enjoy trading again. I hope some of you have started shorting homebuilder sector. Names like Pulte (PHM), Horton (DHI), and Lennar (LEN) have all worked out very very well today. They're all down more than 3%. Incidentally, MSFT is looking ripe for a shot from the short side too.