Monday, August 29, 2005

Another Summer Day With Some Wind

The markets showed some nice resiliance by climbing the entire day after setting morning lows. Volume was mixed and not above the 50 dva so not too much to read into today.

There remains plenty of overhead resistance in the short term, along with an established sub-intermediate downtrend. The bounce today did help relieve short term oversold conditions based on the market oscillators. But the market is a bit confusing so not sure which way next direction is.

Natural disasters, crude oil, consumer debt, poor Michigan consumer numbers, housing bubble, and war. It feels like there is plenty of reason for the market to climb the proverbial wall-of-worry but the sentiment readings (AAII, bullish/bearish newsletters, and put/call ratio) are still at either high bullish levels or middle ground. So despite all the negative talk, it doesnt appear to be negative enough to establish much more than a short term bounce from these levels.

So we wait another day and see what tomorrow brings.

Sidenote: Ah Cramer! He is a little late with CPST isnt he? I gave you the reader that stock on 8/23. Guess what stock I sold a quarter of my position of AfterHours thanks to the "gamblers" bidding it up? If you guessed CPST you are right. Now collect your 50% gain in four days and send me a check.

New Swing Longs: IFSIA ASVI PAY FCFS FSTC CGPI

Longs Outperforming Market: CPST MSO SYNP SGDE USLM SPNC PETS LDSH PWR TWTC APT SMBI

New Swing Shorts: HIG MUR

On The Radar: ABIX TOFC FTG SPA DHIL

Aloha from Maui

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