Thursday, April 2, 2009

OMG! I need more MA's!

I have been trying to keep my charts as clean as possible, however, I just noticed that one of my "short interest" stocks (MW) has recovered so much that after battling and beating the 50 day Moving Average (MA), it has taken out the 200!

Click for a larger image.

While no one would call the markets "healed", not even Cramer. One must admit that the markets do have a lot of strength. In fact, today Jim said that we are out of the depression, its now just a recession.

Click for a larger image.

The Gann Angles on this six week, hourly, chart of DIA (the Dow 30) show that momentum is slowing, however, there is no reason to think the rally is over (after the gap gets filled).

Please do be careful. Use protective stops. Invest wisely. Buckle your seat belts, its going to be a bumpy ride.

The daily DIA chart is still in an official downtrend... lower highs and lower lows. Both the 50 and 200 MA's are still in a downtrend as well. Watch for a close above $90 before we can go long with a fair amount of certainty and looser stops.

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