Weak Close

Today reminded me of an axiom I learned long ago; Bull markets open weakly and close strong, bear markets open strong and close weak. While I'm not saying we are in a bear market per se, todays action shows weakness. All of the major averages backed off their 9day ema's today. While it's possible they will go up to their 20 day averages, it's just as feasible that they turn around here. The further we bounce, the more dangerous it is to play the long side.

Here is a chart of the Q's backing off the 9ema.

NASDAQ 100 Trust Shares (ETF) (Public, NASDAQ:QQQQ)



Here is another stock that came up on my short screen.
Walter Industries, Inc. (Public, NYSE:WLT)
WLT had a pretty nasty drop and it looks like a dead cat bounce is wrapping up. The Upper bollinger band is crashing in on the stock, and today was no a productive day for bulls. If the market continues to drop, this might be a nice short play.

I didn't run too many screens since I am not trading tomorrow. I found it interesting that goog popped up on the short screen as a stock possibly failing at the 20sma. Keep an eye on it.


Good Luck,


Joey