Low Volume

Posted by downtowntrader | 8/07/2006 08:42:00 PM | 1 comments »

The indices ended down today but volume was low and the action fairly indecisive. All this was expected with the widely anticipated fed decision tomorrow. Although most likely the markets won't make a move until after the minutes are released, there is a chance they start moving right away. If you recall the last meeting, the markets were moving higher and kept moving higher after the meeting. It wasn't till the next day that the move was faded. With that in mind, here are a handful of charts worth watching.

GOL is up against a descending trendline and will probably test the 200 sma if it fails here.
TIE has been one of the great movers this year, but has been stuck in this descending channel. It is up against the upper trendline and showing some weakness. Slow Stochastics has crossed over under 80 possibly showing a failure to gain momentum.
KOMG has been trying to hold the lower trendline but is up against some pretty stiff resistance here. It will probably fail without the help of a rally in the Nasdaq.
ALJ is one of the better looking bullish charts I am seeing. They reported earnings after the bell and there were no trades, so not sure how it will go tomorrow.

Good Luck,

DT

1 comments

  1. Dave // 4:24 AM  

    Hey DTT,

    I always love to see other traders with the same annotations on their charts as I have on mine :)

    Tonight our TIE charts matched up exactly :)

    I wouldn't say what TIE is making is a wedge and is more of a channel, but what do you make of the volume continuing to drop off. Another added bonus for the short side is that the RSI has failed to recapture the 50 level.

    http://stockcharts.com/c-sc/sc?s=TIE&p=D&yr=0&mn=5&dy=0&i=p25178175185&a=81899565&r=896

    Cheers,

    Dave