EDGE TRADER

Sunday, January 22, 2006

Technical action in the market

Reading Cbsmarketwatch.com for Asia news and came across this article. Very interesting discussion of the technical situation of the market after Friday's close. Now I have to be honest, I really discount the DJ as an indicator, which is where most of the gloom and doom centers on. GM has really played havoc with that. I wish DJ would just drop them from the index; we'd all be a lot wealthier thanks to the better market perception had this change been made 6 months ago.

The S&P is my indicator of choice, and this is the portion of the article I focused on. I think we are in for another choppy week next week, but there may be some room to work with until the bell on Monday. As for my survival through that mini crash, I seemed to manuver surprisingly well; having gained 1.1% from 1/18 to 1/20 vs. the S&P's decline of 1.3%. Had I relied on emotions alone (rather than numbers) I'd be contemplating the cannon ball off the Tappan Zee Bridge rather than writing this post.

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