TXN came in with strong numbers and is trading higher on them. In fact, most of the reports were positive last night and the mood is one of buying this morning. Futures have eased a bit but are still showing gains from yesterdays close. When I look at these markets though, I can't help but see possible warning flags all over the place. Mind you, they are still yellow flags, but flags nevertheless. The most important flag is that of the BKX that is showing a clear cut head and shoulders top. Earnings in the sector sucked air and the stocks are starting to break down some as a result. The financials are the heart of the majority of the listed stocks and just like the chips on the Nasdaq, without their advance, that entire market will suffer.
The weakest major, the DJIA, has failed to trade above that 10700 area. It hasn't broken down yet, but a move below the 10570 area would mark a retracement. The SPX reversed pretty hard yesterday off of new intraday highs while other markets couldn't make them. Add that to the fact that we are slowing in momentum here as evidenced about the break in the NDX of the two week trend line. All in all, there's enough to make me suggest that it is quite possible that the highs for this move are now in.
I'm continuing to look on the short side for swing trades as a counter trend trade. Unlike before, I'm waiting until we get a more clear cut signal that we have a more serious retracement brewing before I take a larger short swing trading position on the general indexes. Take a look at WB as a good short candidate now for an individual name. That sector is hurting and that stock in particular is sporting a failure bounce pattern now. See what happened to WRLD yesterday. The sector will soon be the talk of the town.
The weakest major, the DJIA, has failed to trade above that 10700 area. It hasn't broken down yet, but a move below the 10570 area would mark a retracement. The SPX reversed pretty hard yesterday off of new intraday highs while other markets couldn't make them. Add that to the fact that we are slowing in momentum here as evidenced about the break in the NDX of the two week trend line. All in all, there's enough to make me suggest that it is quite possible that the highs for this move are now in.
I'm continuing to look on the short side for swing trades as a counter trend trade. Unlike before, I'm waiting until we get a more clear cut signal that we have a more serious retracement brewing before I take a larger short swing trading position on the general indexes. Take a look at WB as a good short candidate now for an individual name. That sector is hurting and that stock in particular is sporting a failure bounce pattern now. See what happened to WRLD yesterday. The sector will soon be the talk of the town.
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