Thursday, January 24, 2008

01.24.08 - Consolidation Day?

One bullish pattern to look for today would be a "consolidation day" with a narrow range and light volume: the pause that refuels. We still have half a day ahead of us and note that the five-day moving average, while providing support thus far, remains negatively sloped. As bad as home sales are, at least inventory is falling.

1:30PM CST UPDATE: Too wide a range for the above, but I'm not going to stare at the gift horse. Looks like there are some business measures in the stimulus package and the ultimate consumer rebates came back up. Consider in advance how/when/whether you wish to hedge as we move along here.

Blog to Read: Bear Market Magnitudes since 1960s

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