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Sunday 05/21/06 SUNDAY AFTERNOON WEEKEND UPDATE at 03:39 PM EST
Seeing a lot of short term oversold reversal possibilities here, but they may be just that...short term. I think we are still vulnerable to another 3-5% decline, but it would be quite normal to see an oversold bounce right here. Whether it will turn into more than a reflexive action won't be clear for another few days.
Meanwhile, it does appear as though the SOX and SMH have shown more conviction than the other indices and showed a very strong influx of buying on volume Friday. RKH banking is on the verge and may well signal on Monday.
For those following the ETFs, here is the current trade chart.
We will be posting past history trade tables for each term shortly, as well as options tables.
This should be the final iteration of the program, hence the removal of the 'Beta" tag. I will also be posting the trade rationale and a lot more info in the coming weeks.
As Roundtable members if you wish to be notified during the last hour by email of MOC trades drop me an email at ETFinfo@gmail.com
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Friday 05/19/06 WATCH THE SOX AND SMH at 01:32 PM EST
We have just gone through the worst retracement week in three years, but still less than 5% drop on most of the indices and has been orderly.
Not going to try to call a bottom for this one although it is awfully tempting in light of extreme oversold condition on most indices.
What we can see is signs of life in the SOX and SMH Semiconductor proxies... As you know, these are leading indicators of the NASDAQ Tech index and techs in general. Too soon to call a reversal, but does look promising and will notify you if we see anything perking.
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