Online Stock Trading | Price Action

Price Action


Filed Under Fundamentals & Charts |

Let’s check out what the price action is telling us!

NASDAQ.png

Bearish action on the NASDAQ

Onto the S&P 500

SPX.png

Its clear that price action is not headed in the right direction.

We must be careful of any type of oversold rally.  These tend to happen and wipe out weak shorts.  Take a look at Thursday’s price action, late day rallied.  Then Friday traders take away the gains.  This type of action leads me to believe that any type of rallied should be sold not bought.

Why are we vulnerable to short-term rallies?  Check out the VIX, its not moving towards its Aug 16th highs when we put in our low.

VIX.png

With the lack of fear, shown above by VIX we are no doubt going to get rallies that will be shaking out weak shorts.

Long term horizon, we are headed lower.  The immediate short-term I do see the markets rallying.  With that said, watch for Tuesday’s PPI report that should fuel inflation fears and a decreased likely hood the FOMC cuts its Target Rate.

Enjoy your weekend!

Market Speculator

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Comments

2 Responses to “Price Action”

  1. Monster Stock Trader » Blog Archive » Price Action on January 12th, 2008 6:11 pm

    […] (more…) This entry was posted on Saturday, January 12th, 2008 at 3:11 pm and is filed under Market Speculator. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. […]

  2. Pages tagged "bearish" on January 13th, 2008 8:30 pm

    […] = “34d024″; var mooter_wrapper_url=”"; var run_method = “onload”; var mooter_target = “0″; Price Action saved by 1 others     meetsnipe11 bookmarked on 01/13/08 | […]

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