Smoking Securities

Half Baked High Finance

Market Makeup

leave a comment »

A rundown of various market themes for tomorrow’s trade.
Despite the hefty haircut in the QQQQ’s, my NASDAQ indicator is still bullish. Buy the dip is still in play until I see some O’s, but I’m taking very small positions.
The BXM/SPX ratio is bearish as long as it is printing X’s. Nevertheless, it is approaching resistance and a 10sma downtrend.
After mentioning HYG here, I rode today’s wave up and I’m adding to it as the tape presents itself. JNK also has breakout potential.
Another bullish indicator is the rising summation index.
The first sign of potential inflation is here as the spread trend between the 30Y Treasury and Gold begins to loose momentum.

Today’s action was a little hairy for a buy the dipper, and if there wasn’t such a strong late day rally, I’d be pretty worried. Tuesday will be critical as further weakness will likely make my SPX indicator bearish. Smooth trading to all, and happy Hanukkah to my fellow tribesmen.
Advertisements

Written by chucklesamadeus

December 22, 2008 at 7:39 pm

Posted in BPCOMPQ, BXM, Gold, HYG, NASI, SPX, USB, VXN

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: