Not much of a change

Not much happened technically today as the indices closed marginally higher. We will surely get another leg down and that is when the true nature of this decline will start to become clear. To borrow some Elliot wave terminology, if you are a bull, you want an ABC corrective move. If you are a bear, then you want an impulsive 5 wave
move down that would signal a change in character. I am starting to look for strong stocks at support and for weak stocks showing distribution. Since we could go either way now, the idea is to have both candidates in the watch list and follow the markets lead.

Telefonos de Mexico, S.A. (ADR) (Public, NYSE:TMX)
TMX dipped under the recent base and is sitting right on the lower band. Sometimes when a stock headfakes under support, and then reverses, the move is quite drastic as shorts scramble to cover, and longs jump in. The same is true for breakout failures.


Cerner Corporation (Public, NASDAQ:CERN)
I've been watching CERN for this test of the lower Band as mentioned in Sundays post. We now have a narrow range candle, and if the markets cooperate, we may have a nice move to the 20sma and then possibly the upper band. Wait to see if it makes a higher daily high though and preferably some decent volume.


Sirius Satellite Radio Inc. (Public, NASDAQ:SIRI)
I would have to classify myself as bearish in the intermediate to long term, but I am finding the SIRI chart quite intriguing. Here is a long term monthly chart with some finonacci retrace lines on it. If SIRI has bottomed, which appears to be the case with a succession of higher highs and lows, then a trip to at least the 38.2% retrace should be expected. The daily chart is interesting too showing a break of the recent downtrend and a recent increase in volume. On a side note, I love my SIRI satellite radio and can't imagine why anyone still listens to FM.
Also, if anyone is interested in art or photography, I uploaded another piece on my other blog. The blog is a work in progress, but I have some stuff already there. As always, any comments or feedback are appreciated.
Good Luck,

DT