Tricky Markets

Posted by downtowntrader | 5/14/2006 11:15:00 PM | 0 comments »

This is a tricky spot to trade as the markets are clearly showing weakness, but are very oversold in the near term. I noticed that while most were taking a beating, semi's were doing well until some late day weakness. Small have been getting pummeled.

Here is a chart of the Sox which has clearly broken support. However, this doesn't mean it won't have a tradeable bounce here soon.
MRVL broke under support however, buyers stepped in strong volume possibly setting a bottom.
TRID is another one that may of found support.
SNDK has been following the lower trendline and may be resolving into a triangle.
GOL may be setting up for another high.
NEU may of found support at the rising trendline.

I probably won't be looking to initiate any swing trade shorts due to how quickly the markets became oversold.

Good Luck,