Jan
26
Week Ahead 1-25-2010
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Week Ahead Jan. 25, 2010 Volatility…I have talked about it in many ways over the past several weeks: blatantly saying that it was a buy. In our classes on Wednesday and Thursday we stated that if the market fell below our support level of 10,270 we could easily see a pop up above the 25 level on the VIX. It seems that a lot of our longer term trend lines have been broken. Our shorter term price consolidation has shown us the true breakdown, first breaking the upward sloping trend line and now confirming through the break below the 10300. Does this mean it’s all over? Hardly! Earnings have been pretty solid. It seems the public has been punishing companies that beat, but not by enough. Google is a prime example. I guess the owners selling 5million shares each over the next couple of years doesn’t help. So what is the next move… a very tough one to forecast. Taking profits is our first rule and several down days are sure to have a reversal day to shake the weak hands out. We talked about retailers like SHLD, COST, TIF and RTH in Wednesday’s trade labs. Volatilities were cheap and the retailers along with the markets fell off. SHLD was off roughly $4 since Read more
