Wednesday, January 21, 2009

Bottom Resistance Met

Remember how I said we will bounce around between 8000 and 9000 on the DJI before we make a break? Well, the bottom is in which means we can look forward for a few days of recovery, starting with today. At least I sincerely hope so.

The futures are pointing towards a good day today. A break through the bottom resistance would mean a major leg down, but I don't see it happening. If you have taken my advice and waited to pull the trigger on some trades until we have an up day, I think today is the day to bang away.

If we ever break the 9000 barrier we will have a very nice bull run, but the weakness of the financial sector will be dragging everything behind it. When that sector breaks loose, look out!

Have a good one,
Roger

2 comments:

  1. Good call Roger. Today was kind of an aberration since so many stocks bounced up after yesterday's crash. We'll see how it goes tomorrow. I am also long ADSK as well as LAMR. Looking forward to your posts as always.

    Phil

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  2. @Phil
    Thanks. LAMR seems good to go through 15.75 where it will meet some resistance. I am cautios on ADSK as it has no clear path from here after issuing a 4th qtr profit warning. I'll probably stay in to at least 17.15 or so. Hope the market continues up. Week start today most likely, but good chance it will finish up. As always, good luck and have a good one!

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