Dow near 12K

The Dow seems to be bearing in on the 12,000 mark which is a nice round number that could offer up some near term support. I've been noticing the talking heads on CNBC and Bloomberg saying that this is a good buying opportunity and that this is a little bump in the road. This makes me even more cautious of any bounce due higher. It is still up in the air as to whether this is a correction or a change in primary trend, but either scenario should result in much lower prices ahead. Things have moved very quickly and it is getting difficult to find any decent shorting candidates in my opinion, so hopefully there is a bounce soon. There may be some interesting long opportunities if the markets gap lower in the next day or two and exhaust the sellers. At this point, the safest thing to do is wait it out.

I added a few new blogs to the blog roll tonight. For those that haven't checked out TyroTrader or Tradewhileworking, please do so. Tyro has been posting some great stuff recently, and Tradewhileworking really caught my eye as a guest blogger on Fly this weekend.

I also want to introduce a new blogger to the trading blog community. Tuff is a good friend of mine and has been a guest blogger for me in the past. He just started his own blog titled Regulation FD. He will be focusing on discovering inefficiencies in the markets which can be exploited by becoming the "smart" money. We will be trying to collaborate on some posts between the two blogs in the future, but our core missions are quite different. His first analysis on the blog shows the kind of research and thought that goes behind his stock selection process. And trust me, this is just the tip of the iceberg with this guy. He asked me to post a technical overview of his first company profiled, which happens to be Hurco Companies.

Hurco Companies, Inc. (Public, NASDAQ:HURC)

A daily chart for HURC follows below. While HURC has been on a tear recently, and has weathered the correction fairly well, I can't get all that excited about it here because of the state of the market. It could hold here at the rising 20sma, but my gut is telling me it will have an ABC correction with only the down A wave complete here. I would guess that the rising 50sma and lower bollinger band will be tested, which may offer a great entry depending on the market condition at that point. A couple of things that stand out to me here is the nice increase in volume recently, and the fact that the indicators are in synch.


Here is a weekly chart showing a much cleaner perspective. HURC is clearly above resistance and not too far from its highs. This is actually a pretty clean chart without to many surprises. I really like how HURC has been outperforming its peers as shown by the Price Performance line for HURC vs the Russell.



On a lighter note, I've noticed a few bloggers (Jaime, Mike, Estocastica, Trader-X, Howard) out there posting their top 20 movies, so I thought I would throw mine out there. In no particular order.

1. Braveheart
2. The Usual Suspects
3. Dances with Wolves
4. Godfather
5. Saving Private Ryan
6. City of God
7. Snatch
8. The Sixth Sense
9. Matrix Trilogy
10. The Gladiator
11. Donnie Brasco
12. Heat
13. Shrek 1 and 2
    
14. Meet Joe Black
15. Interview with the Vampire
16. Traffic
    
17. Reservoir Dogs
18. The Royal Tenenbaums
19. Blow
20. Gangs of New York

Babel and The Departed are two recent movies that may make the list after I rewatch them at home.

I had a few Pitt/TraderX movies on the bubble that didn't make the cut including Fight Club, Legends of the Falls, and Seven. You can practically exchange any of these with Joe Black, but I thought Hopkins was awesome in that. So there you have it.


Comments are welcome and if any readers want to post in the comments section I would love to see your lists.


Good Luck,



Joey