Potential Roadbumps on Dow

Author: Jeff Pierce* Comments(2)

djia

4  negative aspects about the chart above.

  1. Nearing the top of the current uptrend.
  2. Volume fell on Thursday when the Dow made a new yearly high, and then we had a distribution day on Friday.
  3. Dow 10k acted as a magnet and now that we overcame that psychological number, we could “sell the news”.
  4. This is probably the most significant as the McClellan Oscillator is now negative, and make a new lower low. The fact that the market is near it’s highs and this is not confirming is a troubling sign. While it’s not reason enough to aggressively short the market, it clearly is a sign to lighten up on one’s exposure to the long side.

2 Comments so far

  1. Mark on October 20th, 2009

    Hello Jeff
    Love the balanced approach and appreciate all your insight thank-you.

    Can you give me your technical input on JIN $ 1.86 ( tsx ) They have reported exponential increases in production and the story looks very favorable over the long term.
    Really hard to find a producer’s stock under $ 8.00

    Mark

  2. Jeff Pierce on October 22nd, 2009

    JIN looks great on a longer term timeframe as well as a shorter term. Potentially a tad overbought and wouldn’t be opening new positions tomorrow, but definately one to watch!

    Are you currently in a position?

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