Archive for May, 2009
More on May 6th Correction Note
I’ve received several questions about yesterday’s entry that predicted a correction, based on the early Nasdaq downdraft. The “angle of attack” was a warning sign because it looked primary, as opposed to corrective. In other words, it had the markings of the first wave in a correction that will trigger several more selloff waves. This [...]
Biotechs In Risk Of A Meltdown
The biotech sector continues to underperform the market, despite a few notable winners, like Dendreon (DNDN). The sector’s biggest guns are the problem, with Amgen (AMGN), Celgene (CELG), Cephalon (CEPH), Gilead Sciences (GILD) and Genzyme (GENZ) all trading under their 50-day and 200-day moving averages. The SPDR S&P Biotech Sector ETF (XBI) is a good [...]
Has The Correction Begun?
This morning’s selloff on the Nasdaq-100 could mark the 1st wave in a larger scale correction. 1420-25 is the place to watch for a downturn that completes a 15-minute head and shoulders breakdown pattern and downside followthrough to around 1370. It could take another one or two days for this setup to trigger a breakdown. [...]
Springtime For Agricultural Sector
Agricultural stocks are finally heating up, after lagging the broad market for many months. This follows the quickening pace of the raw materials rally, which is lifting all sorts of energy, industrial and metals companies. Potash (POT) is a top performer here. The stock has rallied back to November resistance in the mid 90s for [...]
In: Market Day, TA, Wall Street
Restaurant Sector Weakening Rapidly
Restaurant stocks have been on fire in the last month but it looks like the rally is coming to an end. A wave of selling pressure hit the group last week, after poorly received Burger King (BKC) earnings. McDonalds (MCD) has also been rolling lower since it posted relatively strong first quarter earnings on April [...]