On the edge

On the edge
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Sometimes it's a good idea to throw the candlesticks aside and just look at closing prices. It can help by filtering out the extra noise and it can paint you a different perspective you might not have otherwise noticed.

The bottom half of the following charts show the closing prices with the 50 & 200 EMAs. You'll notice the last two times the Transports closed below the 200 EMA, it rallied within the next few days. Today the Transports closed below the 200 EMA.

Could we rally from here? I suppose we could, but we should also take note that the last two times the Transports closed below the 200 EMA, the NASDAQ, S&P 500, & S&P 600 were much stronger than they are now (as compared to the 200 EMA.)










Whatever your decision, I do hope you'll be on guard as we work through these prices. As for me, I've opted for the F-Fund in hopes of passing up Poolman on the tracker.

 

[Birchtree]

If we get the 50/200 death cross that will panic even more hedge funds into playing that old Dell Shannon song - Running Scared. Let'em run as far and as fast as they want - I'm holding as the last man standing.

 

[JTH]

You won't be the last man standing, damm close, but not the last.

 

[crws]

Dell Shannon??
Hey, you know the story about the young bull and the old bull overlooking a pasture of cows...?