Wednesday, February 6, 2008

02.06.08 - Deteriorating Tick

Notice how the Cumulative Tick is losing ground. We could still break either way. Be careful, and as always, look for confirmation before placing a trade. Patience pays even though we are still very much in a day trading environment. I know, pretty banal, but hey...

Bounce Statistics - This would be day three, -4.4% (1:25PM CST).


Adam said...

Are you saying there could be a bounce to the upside soon? You called the bounce right on 1/18 saying it was right round the corner, so are you calling for a similar bounce so soon? I thought the market is not oversold as yet and the typical indicators like VIX, CPCE etc are not signaling oversold.


Jeff Pietsch CFA, Esq said...

Hi Adam, hopefully today's post answered your question, yes as of this morning I was calling for a short term bounce. The indication was the extreme number of dow component stocks closing below their five-day moving averages over the course of multiple days. However, trades need to be tightly managed, take a look at this afternoon (2/07). Thanks!