Smoking Securities

Half Baked High Finance

NASDAQ McClellan Oscillator ($NAMO)

leave a comment »

NAMO090805The NASDAQ McClellan Oscillator, a short term breadth indicator, began a downtrend on Wed. Whether this turns into a sustained move lower remains to be seen, but it is an early warning sign that you should be aware of.

To my dismay, I was stopped out of one of my favorite leading stocks, STEC. Weakness in a market leader is never a good broad market sign, so I’m growing a bit wary of more bullish proclamations.

Though the trend is technically higher, it is likely that I will be cutting any positions that are underwater and raising my stops to protect my gains. Tops and bottoms take days, weeks and months to form, so I’m not selling the farm yet. Trade what you see, not what you think.


Written by chucklesamadeus

August 6, 2009 at 9:32 am

Leave a Reply

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

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

Google+ photo

You are commenting using your Google+ 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 )


Connecting to %s

%d bloggers like this: