Post-market 3/14/08

A lot of people (including me) were expecting a positive open but BSC negative news quickly put the fear back in the market and down it was. I always find entertaining how mainstream media goes from “we are finally bouncing of the bottom” to “Doomsday!” in just 24hrs. The news and tone was clearly negative all day today.

Here is the trend table for today:

Intermediate Short-term
Dow Sideways Down
NASDAQ Sideways Down
S_P Sideways Down

Only DOW charts today:

The Dow pulled right back the 1900 resistance level on the negative news today. Right near the bottom of the range like that, with volatility high, the market gets nervous and direction less. So watch out for the smallest thing to kick the direction around. Both the bears and the bulls have shown they can succumb to pressure pretty quickly. On the 15-minute chart, I still have my range but now I am also keeping my eye of the beginning of a short term asymmetrical triangle formation. To confirm this, I will watch for a bounce off the 12100 levels on Monday. From that bounce, we go back to 1900 within a day or two.

Nothing else to report. Maybe I can take a look at that BSC chart. Just for curiosity really, I don’t see a trade there and I am not looking for one. First let’s look at 10 years or so of data to get an idea of how devastating the market can be. For the average investor its just another train wreck. I wonder if there are any long term employees with pensions in BSC stocks. We are looking at something near a 10 year low at 29.91.

Now lets look at just last year to now. Yes, there were some great 20-30 points swings in there but the overall picture is still impressive, a three times accelerated downtrend (4 times really if you count the last push down almost vertical) from 170 down to 30$ in 15 months:

Happy Trading!

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