Stocks for the Rest of Us
Archive for July, 2009
S&P 500 Oscillator Update: We’re closer to overbought then oversold
Jul 31st
Although the market can continue to go higher, we’re closer to an overbought condition then an oversold condition so caution is the name of the game.
Freeport McMoran FCX = SELL!!
Jul 27th
This is what a SELL looks like. FCX is setting up for a classic double top here and considering the run it’s had in the past few days you’d be crazy not to sell this. MACD is starting to wane and the overall market is looking a little bit tired. We’re running into resistance here and there’s no support until about 52 when the 50 day moving average comes into play. Furthermore, volume is starting to wane as well indicating a lack of sponsorship up and these levels. SELL!!
Starting to Get a Little Extended
Jul 23rd
The major indices are starting to get a little extended here. A prudent trader would be taking more gains as the markets continue higher. One thing of note is the trend in declining volume which usually indicates a lack of sponsorship and belief in the rally. If today’s volume ends up being rather high it could indicate a “blow off” top in which the buyers exhaust themselves and the sellers usually take over from that point.
S&P 500 Oscillator Update
Jul 21st
S&P 500 Oscillator
Although we’re not overbought yet, we’re definitely not oversold. I don’t think you can buy here but I don’t see too much danger in holding. When you start to see the oscillator flatten out and roll over you probably want to start selling. If you have a large long only portfolio then you might want to consider putting on some hedges up here around S&P 950.
Why This Whole Game Is Ridiculous
Jul 21st
Two tickers sum it up, DMM and UMM. These wonderful new funds from Macroshares allow you to bet on the direction of the housing market. I honestly have no idea how these even work but just the idea of betting on the housing market as if you were at a casino seems ridiculous to me. I suppose the pundits will say that it allows you to protect yourself from a housing decline by hedging your house. Maybe you can buy options on these bad boys and lever up. Yeah, there we go, that’s a good idea.