Sunday, June 24, 2007
Point & Figure charts
I think its time to have a look at the point and figure charts. Lets get rid of all those goofy squiggly Stochastic, MACD, RSI, etc. etc. and just look at the price action. In other words lets get rid of all the distractions and see whats really happening. After the S&P had a powerful nonstop run it looks to me that it is just consolidating those gains kind of like it did in Feb. & Mar. only this time it's giving back even less than before. On to the Nasdaq. The Naz is so strong that it hasn't even been able to put in a 3 box reversal yet. Neither index is even close to breaking the up trend lines. How much stronger can you ask for? Now add in a very bullish COT report. If you are going to try and fight this market I would keep positions very small and be ready to take profits quickly. Its probably safer to use the pullbacks as buying opportunities.