The Phone Lines were ringing off the hook!!

/in , /by

Well, to be honest, I got 2 requests on the Markets in general, but they are just as important to me Thumbs up animated emoticon

The Question was , “Did you see a pullback in the Markets approaching and is that why you moved to the Energy Sector?  If so, what did you see?”  

The answer is ,

“I did think the markets were toppy and in need of a pullback, and I expect a bounce soon, but It does not look like the downside is complete so far. (Recall my chart 2 posts back saying “Sell in May, Go away?”).

The second part is , “No, I just entered the Energy sector because using tech Analysis, it was still ‘set up properly’.  It also did withstand the heat recently.”

 

Here is what I was looking at on March 21 . There was weakness in BOTH the weekly and daily charts ($1800 target?)

$SPX WEEKLY

 

 

SPX DAILY WEAKNESS TOO (Notice High Volume reversals off of the top)

 

$SPX March 21

 

To be honest, I expected more downside, but the ‘Buy The Dips’ mode kicked in . Since March 21 the SPX dropped to the 50sma area, bounced to SLIGHTLY new highs, and dropped again…here is why I dont think we are done.  Charts need repairing pronto…or we bounce & go down further I.M.H.O.

 

SPX APRIL 8

 

April 2, My main Post was to be alert , with this Weekly (Weakly) chart

 

NDX TOPPING

 

When I saw the flush of volume in the Nasdaq, I Tweeted this MID DAY, pointing to the 200sma – Notice the MACD

 

QQQ MID DAY APRIL 4

And this- End of day.

 

QQQ

 

March 21…DJIA struggling? A Pullback is coming in the DOW

 

$DJIA weekly March 21

 

I feel that the BIG BOYS may be selling to the retailers, the illusion of “Buy those Dips” at tops is mesmerizing- and when they finally hit the exits  (Sell in May & Go Away?)  those holding on to the top…waiting for the PPT & Buy The Dips crew to help them break even, may get left holding the bag .  Have you seen everybodys favorites? The MOMO stocks.   I dont have time to go into the SOX , SOXS , TZA, and other charts, but check out these Wall Street Darlings charts…are they currently healthy?

 

AMZN

 

NFLX

See also GOOGL, PCLN, FB, TWTR, YELP, QIHU , etc etc etc

 

I’m not trying to be Doom & Gloom, but some of these stocks are quickly at Sept Prices again, and many arent seeing it.  They cant wait to buy the dips and hold again. True- This could be a ‘rough patch’ and a ‘much needed correction’ , a ‘shake out’ w/ a healthy correction to ease sentiment and activate shorts that eventually cover and cause a rally.  Then ‘BUY THE DIP’ mode can kick back in, and so on.  AT THIS POINT, however, Charts are saying take it 1 step at a time.   They need to be repaired or they will continue to break down after bounces ,  so Play the bounce , but stay alert.

 

Happy Trading and thanks for reading!