Wednesday, August 20, 2008

08.20.08 - Oversold

I'd start looking for reversal plays this morning. The a.m. downdraft has us officially in (short-term) oversold territory.

7:55AM PST UPDATE: AD Line and slope of Adjusted Tick look constructive. Don't forget to trail stops or set exit targets.

9:05AM PST UPDATE: Out.

On the daily time-frame, short-term RSI's are quite low now even as traditional Macd's look to be rolling over. I've been looking for a 'bottom' to trade, but note that intra-day the AD line, New Highs and Adjusted Tick are all heading back down again. Really a mixed picture and not alot of breadth supporting my bottom fishing premise! Only trade for now is to play the noise on range extremes, it seems. These are all scalping trades; be nimble.

Have you voted in the reader poll to the right? It's just for fun to stimulate some interaction here, but do weigh in! I'll be keeping that open until at least thirty responses are logged.

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