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Thursday, February 21, 2008

CNBC Does Technicals

The word is that even CNBC is talking about the triangle formation forming in the major indexes. I wish I knew what they said abput it, but I would imagine it was something like "this is further proof we have hit the bottom. It will break up from here". And as the CNBC minions start buying in antipication of a big breakout, the market will suddenly reverse and head for the January lows. As usual, Bernanke will get the blame.

The Nasdaq got a big gap up today, thanks mainly to a good report from RIMM, but then the selling started, only to be stopped by the rising trend line.

RIMM was typical of the gappers I saw today. The smart money is using strength to get out.

A close below 688 on the Russell and this rally, such as it is, is over. MACD looks like it wants to flop over and start heading downwards, so things don't look encouraging.

Gold refuses to go into a correction. MACD is threatening to reverse upwards. It is quyite extended, and the 50dma is running away from the 200dma, but I think there is still plenty of juice left in this and it could make a run at 1000 just on psychological factors alone (sort of like oil at 100).

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