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Posts Tagged ‘VXN


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As shitty as the economy may be, the NASDAQ looks like a buy to me.

bpcompqvxn090311Risks remain high, but the situation’s changed, volatility is dropping and stocks are the rage.

Consider nibbling at your favorite stock, Amazon (AMZN) might be good for a pop. No one can say how long this will last, and it certainly will end when it runs out of gas. Needless to say, it doesn’t quite matter, ride the trend so your wallet gets fatter. Still, small positions remain a good call, the volatility is a risk to us all.

The primary trend does remain lower, but bounces can take months to roll over. Pick your spots and manage your mind, if you miss this chance there is more time.


Written by chucklesamadeus

March 11, 2009 at 3:53 pm

Posted in BPCOMPQ, VXN

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3 NASDAQ Charts

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Price is the only thing that pays, but it’s not the only thing to watch.

Although the NASDAQ was up more than 2.5% today, 3 of my indicators remain bearish.

Chart 1: QQQQ (NASDAQ 100 ETF) is falling with volume not seen since Lehman’s went bust, yet it remains above the November lows. This feels like a dead cat bounce before the floor falls out.

Chart 2: This NASDAQ indicator synthesizes the % of Rising NASDAQ Stocks and NASDAQ Volatility, expressing a market environment beyond price. When it’s going up (X’s), more stocks are rising amidst lower volatility, and when it’s falling (O’s), volatility is increasing as fewer stocks increase. No X’s have been made, so I’m staying in cash.

Chart 3: An explanation of the Summation Index can be found here. Like the other two indicators, without a new row of X’s, there is no sign of a upside reversal.

Written by chucklesamadeus

March 4, 2009 at 9:37 pm


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