Saturday, November 10, 2007

Qs Weekly Update

The Qs suffered the worst calendar week loss in the last 15 years and did it by a wide margin. Friday's action was particularly virulent with virtually no buyers for the last 30 minutes as 30 million shares of the Qs sold down 2%. This is what happens when there is no uptick rule. Great if you're short. . .not so great if you're long. There were absolutely none of the typical 1-2-3 retracement patterns during that last 30 minutes, further demonstrating the devastating power of program trading and the curtailment of trading controls.
The weekly linear regression chart does not look good. This week was the widest range bar of the year and is was clearly all down. Which is easy to appreciate in hindsight, but difficult to predict from the several daily setups during the week that appeared to encourage a recovery.
The daily linear regression chart (not shown) looks just plain awful and the current technicals do not bode well for a rally of any substance.

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