Courtesy of David at All About Trends
Last night we talked about the big picture as it pertains to Elliott Wave. Today?
The big question is: If the big picture says down then why did we cover some of our holdings? Because a lot of times markets don’t just fall off the cliff. More often than not they bunny hop down — two steps down, one step up, two steps down, etc.
Another reason is when you look at the daily index charts below.
Last night we touched upon how the OTC markets typically lead (that means both directions mind you)
Especially of note is the OTC chart above. See where it stopped today? A prior support level and the 61.8% Fib level. It was also at that moment in time we saw numerous go go names that took off too.
Names like VMW and CRM both hit the 50 day averages or uptrendlines and started to move higher. Other names like BIDU came close to an uptrend line and moved away from it while other names like POT and MOS also hit trendlines and started to stabilize and go higher off of that.
Take AAPL for example. That stock hit a low of 246.12 and is now at 252 .00 as we post. Talk about a day trading buy in the face of fear! That was a huge trade and you are basically done for the day.
Can’t tell us high frequency hit and run isn’t working these days. Remember a robot has NO EMOTIONS.
While we are on the subject of leaders let’s take a quick look at the charts of them below. We’ll probably keep them all up here and as they approach a pattern we can work with we’ll move them to the appropriate watch list.
VMW — VMware
CRM — Salesforce.com
BIDU — Bidu.com
MOS — Mosaic
POT — Potash
AAPL — Apple Computer
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