Thursday, September 06, 2007

Calm before the storm?

Qs opened with a pop, then a drop, then a pop, then a drop, then a pop, then a whimper finish. The black hammer is mildly bullish and while the 3/7 DSMA shows no immediate danger of crossing, the MACD is beginning to turn down. Somewhat odd was the fact that the $compx was up and the Qs were down.
The pop in the DOW was basically the result of 5 stocks (GE, KO, MRK, MSFT and UTX), so it wasn't exactly a wildly bullish day. Although the NYAD was upslope for the last 2.5 hours the TICK provided little confirmation to support additional long positions. There is still a palpable amount of uncertainty hovering around the financials along with the lurking fear that we may see a repeat of Aug 16th (looking for that double bottom W) and I suspect many folks are sitting on the sidelines waiting out the volatility chaacteristic of September.
The VIX had a quiet day with only a 2.5% range, still sitting between the 10 and 20 DSMAs and riding the MACD zero line.
This is beginning to feel like the calm before the storm and yesterday's caution advisory is repeated.

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