Volatile Session

Posted by downtowntrader | 9/19/2006 09:24:00 PM | 1 comments »

Today was a pretty volatile session with most of the indices pulling back pretty hard and then reversing pretty strongly off their 20 day sma's. There were plenty of wild moves on stocks as well, leaving doji's and spinning tops all over the daily charts. I can only imagine that tomorrow may get wild, although if i remember correctly, the last two fed release days have been positive in the morning leading up to the announcement. The bulls showed some resolve today and although everything is overbought, the bulls could make an assault tomorrow on alltime high territory on the Dow and May highs on the SP500. I still believe that buying here is pretty risky but I am giving my long positions a little more room to run.

Here is a weekly chart of the Nasdaq Composite. It is up to what could amount to formidable resistance and may be forming a bear flag.
CTXS was highlighted on Sundays update and is starting to drift down a little. If it loses the 200sma tomorrow, then it should drop fairly quickly to the 20sma.
NSM fell out of the wedge today but closed well. The indicators are softening from an overbought level, so this may drop more.
UTSI was highlighted on Pristine's chart of the week column this week. Usually, these bomb out as a lot of rookies play these stocks, and I notice that the pop gets faded. However, after triggering on their system, and pulling back as expected, it held up without making the lower low. If it can clear the resistance above, it should make for a nice move.
ODFL has been getting strong support and may get a "whipsaw" rally here. In a whipsaw, a stock breaks support and aggresive shorts pile in. The stock then rallies back over broken support drawing in new buyers and forcing shorts to cover. Keep an eye on it to see if it follows through.
UARM was one of those volatile stocks today, and I'm glad I missed it. I highlighted it this Sunday as a potential short and it looked like it gave a good signal today. However, it rallied very strongly at the end of the day to close in a doji. It still looks mighty toppy to me.

Careful tomorrow as it could get pretty wild after the Fed announcement.

Good Luck,



  1. Anonymous // 10:50 PM  

    Nice work DT about time you posted early....