A Few Thoughts on Wednesday’s Market: In looking at the charts from yesterday’s trading activity I was struck by the apparent breakdown and weakness in the vast majority of the charts I looked at. While there is a good possibility several of these indices could bounce from these levels, another couple of down days will break the upward trend that has been in place since early summer and signal the start of a new downward trend. The charts of the various sector indices I track can be grouped into 3 basic categories. The 1st being the capitalization weighted tech indices that are very heavily weighted with Apple, Inc. ‘AAPL’. Due to the excessive weighting of Apple within these indices as Apple has moved lower, these indices have been dragged lower at a sharp paces. Basically a kind of “Live by the Sword, Die by the Sword” situation.
Tag Archive for CEX
Market Commentary – August 2nd, 2011
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A Few Thoughts After the Close: The overall market moved sharply lower yesterday in a broad based selloff that saw every index I track move lower on the day. The weakest the Airlines, Retailers, High Tech, Cyclicals, Transports, and Banking…
Market Commentary – July 6th, 2011
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A couple of notes from my review of the charts from today’s trading activity. The Dow Jones Transportation Average hit a new yearly closing high today. It looks like it has completed a “cup pattern” with a measured move to…