NAMO Nasdaq McClellan Oscillator –41.47 – The Oscillator is also supportive of a coming pause in the market sell-off as per this TA below.
SOX 372.85 –4.71% – INTC got downgraded this morning and it sure didn’t help the market!. No safe tech rally without the semis joining the party. Ditto for SP-500 and BKX. On 10/24 I loaded this chart below which clearly showed that the semis were in big trouble after a major multi-year trendline breakdown. See the next chart for the updated TA to see how that call went.
Very ugly action in the semis today. Hard to see anything bullish on this chart unless it recovers 400 and that would be just a starter. Gee, that sector is a real mess. Needless to say, a confirmed bearish chart.
HGX Housing 128.38 –5.5% – Ditto for Housing. Goddam mess! This chart below shows that trying to pick long-term bottoms in a broken sector is not an easy task. People had been trying to time the housing bubble’s burst for months and years before it actually happened and now they’re trying to pick bottoms. What I’ll be looking at to hint at a long-term bottom will be a multi-month basing process in the form of a wide flat trading range and then a clear breakout above resistance on big volume and holding 2-3 months above it. Nothing less than this. We’ll see if this method can be as good as this lucky call on the housing top back in August ’05 when I was vacationning in Virginia Beach as per the following comment posted just after the market open on 8/5/05:
Bot TOL Sep 47.50 puts w.at 50, cost 1.85 Message List
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I go by price and volume and the action on both Friday is telling me that it’s for HBs. The whole residential sector imploded in a big way Friday. The drop in HBs finally arrived delayed to the TNX double bottom but it’s now having it’s impact. I toured yesterday the Virginia beach properties facing the beach and I was absolutely amazed to see all the for sale signs out there."
And few hours later:
"TOL now down 4.3% Message List
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Virginia beach is for traders not for lovers!"
This was the beginning of the big real estate collapse. 🙂 I’m currently rating the chart below as a W&S chart with 126 and 160 to monitor.
EEM 144.67 –3% – Emerging Markets. Here’s a confused chart that tells me zilt. Nothing much than to do than to wait and see with a confirmed move below 140 for more pain ahead and a confirmed move above 160 for a nice bullish handle breakout.
WTIC Crude Oil 97.91 –1.28% – This one would be normally easy to figure out but since the sector is controlled by oil crooks, only they know where it’s heading. LOL! Let’s just hope they fail to make it breakout above the pattern north of 102! Gosh, that would trigger a big crooked run. Anyway, and W&S chart with the levels to watch set at 102 and 94.
GOLD 865.70 -.39% – Needless to say, a confirmed bullish chart. Before it would be downgraded to W&S, it would have to negate most of the triangle’s breakout and close below 830.
