Dec 2008
Another Worthless Day
29/12/08 05:52 PM
Don’t expect any trend confirmations until the volume
comes back into this market. Until then, it’s just
chop.
|
Shocker! UAW Keeps $33 Million Lakeside Retreat Complete With $6 Million Designer Golf Course
27/12/08 03:37 PM
As Taken From Fox News:
The United Auto Workers may be out of the hole now that President Bush has approved a $17 billion bailout of the U.S. auto industry, but the union isn't out of the bunker just yet. Even as the industry struggles with massive losses, the UAW brass continue to own and operate a $33 million lakeside retreat in Michigan, complete with a $6.4 million designer golf course. And it's costing them millions each year.
The UAW, known more for its strikes than its slices, hosts seminars and junkets at the Walter and May Reuther Family Education Center in Onaway, Mich., which is nestled on "1,000 heavily forested acres" on Michigan's Black Lake, according to its Web site. But the Black Lake club and retreat, which are among the union's biggest fixed assets, have lost $23 million in the past five years alone, a heavy albatross around the union's neck as it tries to manage a multibillion-dollar pension plan crisis.
Critics call it a resort for union leaders that wastes money from union dues.
"It's their members' money that they're spending on this thing," said Justin Wilson, managing director of the Center for Union Facts, a union watchdog group. "The union has bigger issues at hand than managing a golf course."
Managing the course may become a burden for the union. The UAW covers costs for the Reuther Center from the interest it earns on its strike fund, according to tax documents, but massive losses in the past five years have forced the union to make heavy loans to keep the center afloat. Critics call it a poor investment for a group with over $1.25 billion in assets. "Unions certainly have had real estate investments in the past, but investments are supposed to make money, not bleed money," said Wilson.
The UAW did not return calls from FOXNews.com, and a spokesman could not be reached for comment.
The Reuther Center is open 11 months of the year to offer courses on leadership, political action, civil rights and other topics; it hosts nearly 10,000 visitors annually. The UAW says it sends workers there to "learn, experience unionism (and) commit to labor's cause," according to their Web site. The center was purchased in 1967 and underwent massive renovations in the '90s under the careful watch of former UAW president Steve Yokich. "Today's Black Lake might not exist if not for Steve Yokich," said union member Bob Reidt, whom Yokich appointed as Black Lake's director. "Yokich is responsible for rebuilding Black Lake." The UAW erected a monument to its longtime president Walter Reuther — the center's namesake — which bears an inscription of his words: "There is no greater calling than to serve your brother. There is no greater satisfaction than to have done it well."
But Reuther, who died in a plane crash en route to the center in 1970, never knew the satisfaction of Black Lake's "well-groomed fairways," a course that Michigan Golf Magazine called a "stunning visual marvel." Union members can play golf at discounted rates on one of the country's top 100 courses, designed in 2000 by famed course architect Rees Jones at a cost of $6 million. The center has a storied history. Reuther had his ashes scattered at the site, and Lucille Ball and Desi Arnaz honeymooned there in 1940, well before it was bought by the UAW.
"It's funny that they call it an education center — it's a resort," said Wilson. "If I was a union member, I would prefer that they rented out a room at the Ramada Inn."
What a beautiful golf course. It’s too bad they can’t afford it anymore. Extraordinary times call for extraordinary measures and in this case, this “Taj Mahal” of a resort has to go. Just one more reason why GM needs to go bankrupt to have any chance of surviving this economic downturn.
The United Auto Workers may be out of the hole now that President Bush has approved a $17 billion bailout of the U.S. auto industry, but the union isn't out of the bunker just yet. Even as the industry struggles with massive losses, the UAW brass continue to own and operate a $33 million lakeside retreat in Michigan, complete with a $6.4 million designer golf course. And it's costing them millions each year.
The UAW, known more for its strikes than its slices, hosts seminars and junkets at the Walter and May Reuther Family Education Center in Onaway, Mich., which is nestled on "1,000 heavily forested acres" on Michigan's Black Lake, according to its Web site. But the Black Lake club and retreat, which are among the union's biggest fixed assets, have lost $23 million in the past five years alone, a heavy albatross around the union's neck as it tries to manage a multibillion-dollar pension plan crisis.
Critics call it a resort for union leaders that wastes money from union dues.
"It's their members' money that they're spending on this thing," said Justin Wilson, managing director of the Center for Union Facts, a union watchdog group. "The union has bigger issues at hand than managing a golf course."
Managing the course may become a burden for the union. The UAW covers costs for the Reuther Center from the interest it earns on its strike fund, according to tax documents, but massive losses in the past five years have forced the union to make heavy loans to keep the center afloat. Critics call it a poor investment for a group with over $1.25 billion in assets. "Unions certainly have had real estate investments in the past, but investments are supposed to make money, not bleed money," said Wilson.
The UAW did not return calls from FOXNews.com, and a spokesman could not be reached for comment.
The Reuther Center is open 11 months of the year to offer courses on leadership, political action, civil rights and other topics; it hosts nearly 10,000 visitors annually. The UAW says it sends workers there to "learn, experience unionism (and) commit to labor's cause," according to their Web site. The center was purchased in 1967 and underwent massive renovations in the '90s under the careful watch of former UAW president Steve Yokich. "Today's Black Lake might not exist if not for Steve Yokich," said union member Bob Reidt, whom Yokich appointed as Black Lake's director. "Yokich is responsible for rebuilding Black Lake." The UAW erected a monument to its longtime president Walter Reuther — the center's namesake — which bears an inscription of his words: "There is no greater calling than to serve your brother. There is no greater satisfaction than to have done it well."
But Reuther, who died in a plane crash en route to the center in 1970, never knew the satisfaction of Black Lake's "well-groomed fairways," a course that Michigan Golf Magazine called a "stunning visual marvel." Union members can play golf at discounted rates on one of the country's top 100 courses, designed in 2000 by famed course architect Rees Jones at a cost of $6 million. The center has a storied history. Reuther had his ashes scattered at the site, and Lucille Ball and Desi Arnaz honeymooned there in 1940, well before it was bought by the UAW.
"It's funny that they call it an education center — it's a resort," said Wilson. "If I was a union member, I would prefer that they rented out a room at the Ramada Inn."
What a beautiful golf course. It’s too bad they can’t afford it anymore. Extraordinary times call for extraordinary measures and in this case, this “Taj Mahal” of a resort has to go. Just one more reason why GM needs to go bankrupt to have any chance of surviving this economic downturn.
Merry Christmas!! But Sadly, Market Indicies Looking Weak Going Into New Year
25/12/08 05:48 PM
Last week may have been a low volume week, but that
does not detract from the fact that the month-long
uptrends on nearly all of the major indicies have
been broken and as a result, things are looking
somewhat dismal. Take a look:
The 50-day proved to be too much resistance for any more of a rally and we would not be surprised to see us continue lower here. Keep an eye on that 850 level for the remainder of the week.
With regards to the XLF, there is a possible head and shoulders forming. This coupled with the fact that the downtrend from October is still intact leaves us looking at a very bearish-looking chart. It is safe to say that we could retest those lows of November sooner rather than later. The financials have lead this market all year, and we would look for that to continue at least into the early stages of 2009.
The XHB looked as though it would break through the 50-day moving average during mid-december, but the sellers came out in force to protect that level. That month-long uptrend has been broken and we are looking for the XHB to retest the lows of November.
The fundamentals of this market continue to be terrible. Jobless claims are at 26-year highs, and we’ve seen nothing to suggest that number will not continue to rise into 2009:
And if Americans don’t have jobs, they won’t have income. Thus, they won’t be spending, meaning retailers will go out of business, automakers will go under, etc., etc. And it’s not as if Americans are willing to put anything else on credit these days. I think you get the picture. If you don’t, here’s the picture:
’
You get massive inventories of cars that won’t be sold like those in the picture above in Long Beach, CA. Earnings estimates for many of the companies on the S&P500 are still too high and the companies that managed to “beat” estimates this time around only beat because those estimates had been lowered in the first place. The economy continues to struggle, and we expect the market to reflect that going into the New Year.
Happy Holidays!
The 50-day proved to be too much resistance for any more of a rally and we would not be surprised to see us continue lower here. Keep an eye on that 850 level for the remainder of the week.
With regards to the XLF, there is a possible head and shoulders forming. This coupled with the fact that the downtrend from October is still intact leaves us looking at a very bearish-looking chart. It is safe to say that we could retest those lows of November sooner rather than later. The financials have lead this market all year, and we would look for that to continue at least into the early stages of 2009.
The XHB looked as though it would break through the 50-day moving average during mid-december, but the sellers came out in force to protect that level. That month-long uptrend has been broken and we are looking for the XHB to retest the lows of November.
The fundamentals of this market continue to be terrible. Jobless claims are at 26-year highs, and we’ve seen nothing to suggest that number will not continue to rise into 2009:
And if Americans don’t have jobs, they won’t have income. Thus, they won’t be spending, meaning retailers will go out of business, automakers will go under, etc., etc. And it’s not as if Americans are willing to put anything else on credit these days. I think you get the picture. If you don’t, here’s the picture:
’
You get massive inventories of cars that won’t be sold like those in the picture above in Long Beach, CA. Earnings estimates for many of the companies on the S&P500 are still too high and the companies that managed to “beat” estimates this time around only beat because those estimates had been lowered in the first place. The economy continues to struggle, and we expect the market to reflect that going into the New Year.
Happy Holidays!
Rally or No Rally and The UAW Are A Pitiful Bunch Of Whiners
21/12/08 06:24 PM
The market has been in a bit of a holding pattern as
of late, no doubt waiting on the results of the “big
three” bailout, as well as some earnings data and
bits and peices of Obama’s grand rescue plan that is
surely going to fix everything. We’ll see what
happens going into the next week, but we continue to
believe that this rally will not last and that the
lows of November will be retested sooner rather than
later.
We are still in a nice uptrend since those lows of November. However, until we break that 50-day with some convincing buying, we would not be putting any new long positions on the table. 900 has proven to be formidible resistance and that is the level we will be watching with interest next week. Also of note, we failed to make a higher-high last week, so could a lower-low follow?
The XLF has managed to stay within that 3-month long downtrend, as well as within that month-long uptrend. $13, as well as the 50-day, continue to provide solid resistance against any rally. Again, we failed to make a higher high last week. Something has to give here sooner or later. Until then, chop-chop.
And one could have predicted this, but the UAW are already complaining about the terms of their bailout package that eventually recieved last week. As taken from CNN Money:
"We're pleased that the Bush administration has acted today to provide urgently needed emergency bridge loans to America's auto companies and to pursue a process for restructuring outside of bankruptcy," said UAW President Ron Gettelfinger. "This will keep the doors of America's factories open, keep Americans working and prevent the devastating economic consequences for millions of Americans and thousands of businesses that would have resulted from a liquidation of operations by one or more auto companies."
The UAW, Gettelfinger said, is reviewing the documents released today. "All stakeholders -- management, directors, bondholders, suppliers, dealers, workers -- will have to participate in shared sacrifices to help the industry move forward," he said, noting that UAW members have already made substantial sacrifices to help make the domestic auto companies more competitive.
"While we appreciate that President Bush has taken the emergency action needed to help America's auto companies weather the current financial crisis, we are disappointed that he has added unfair conditions singling out workers," said Gettelfinger. "These conditions were not included in the bipartisan legislation endorsed by the White House, which passed the House of Representatives and which won support from a majority of senators.
"We will work with the Obama administration and the new Congress to ensure that these unfair conditions are removed," said Gettelfinger, "as we join in the coming months with all stakeholders to create a viable future for the U.S. auto industry."
Truly unbelievable.
We are still in a nice uptrend since those lows of November. However, until we break that 50-day with some convincing buying, we would not be putting any new long positions on the table. 900 has proven to be formidible resistance and that is the level we will be watching with interest next week. Also of note, we failed to make a higher-high last week, so could a lower-low follow?
The XLF has managed to stay within that 3-month long downtrend, as well as within that month-long uptrend. $13, as well as the 50-day, continue to provide solid resistance against any rally. Again, we failed to make a higher high last week. Something has to give here sooner or later. Until then, chop-chop.
And one could have predicted this, but the UAW are already complaining about the terms of their bailout package that eventually recieved last week. As taken from CNN Money:
"We're pleased that the Bush administration has acted today to provide urgently needed emergency bridge loans to America's auto companies and to pursue a process for restructuring outside of bankruptcy," said UAW President Ron Gettelfinger. "This will keep the doors of America's factories open, keep Americans working and prevent the devastating economic consequences for millions of Americans and thousands of businesses that would have resulted from a liquidation of operations by one or more auto companies."
The UAW, Gettelfinger said, is reviewing the documents released today. "All stakeholders -- management, directors, bondholders, suppliers, dealers, workers -- will have to participate in shared sacrifices to help the industry move forward," he said, noting that UAW members have already made substantial sacrifices to help make the domestic auto companies more competitive.
"While we appreciate that President Bush has taken the emergency action needed to help America's auto companies weather the current financial crisis, we are disappointed that he has added unfair conditions singling out workers," said Gettelfinger. "These conditions were not included in the bipartisan legislation endorsed by the White House, which passed the House of Representatives and which won support from a majority of senators.
"We will work with the Obama administration and the new Congress to ensure that these unfair conditions are removed," said Gettelfinger, "as we join in the coming months with all stakeholders to create a viable future for the U.S. auto industry."
Truly unbelievable.
Market Analysis: Busy Trading Week Ahead
14/12/08 09:27 PM
We’ve got a lot to look forward to this week,
including a Federal Reserve meeting, a revisit of the
“big three” bailout, and earnings from Goldman Sachs,
Morgan Stanley, Best Buy, and Oracle. It figures that
most, if not all of the major averages are pinned at
major resistance levels, so the news is sure to be
market moving.
Notice that we’ve drawn a new trendling on the S&P 500 dating back to early October. We will see if this trendline holds into the coming week. The current uptrend also remains intact and last Friday’s action certainly has to be regarded as bullish. The markets had every right to sell-off based on that bailout failure in the Senate, yet somehow the major indicies all finished the day positive. Keep an eye on that 50-day moving average, as that will also prove to be formidible resistance on any rally.
The XLF has already broken the current uptrend dating back from late November. Earnings from GS and MS are sure to be the movers of the financials this week. Again, $13 will be strong resistance for any rally.
As a final note, the economic news continues to be absolutely terrible and we will be expecting more of the same this next week. This recent rally has no fundamental base and we do not expect it to last for much longer. In closing, we leave you with a bit of crude “bailout” humor that we found in the trading chat-rooms last week.
Funny, but true sadly.
Notice that we’ve drawn a new trendling on the S&P 500 dating back to early October. We will see if this trendline holds into the coming week. The current uptrend also remains intact and last Friday’s action certainly has to be regarded as bullish. The markets had every right to sell-off based on that bailout failure in the Senate, yet somehow the major indicies all finished the day positive. Keep an eye on that 50-day moving average, as that will also prove to be formidible resistance on any rally.
The XLF has already broken the current uptrend dating back from late November. Earnings from GS and MS are sure to be the movers of the financials this week. Again, $13 will be strong resistance for any rally.
As a final note, the economic news continues to be absolutely terrible and we will be expecting more of the same this next week. This recent rally has no fundamental base and we do not expect it to last for much longer. In closing, we leave you with a bit of crude “bailout” humor that we found in the trading chat-rooms last week.
Funny, but true sadly.
Bailout Dies In Senate, Asia/Europe Down Big, Oil Looking Bullish?
11/12/08 10:27 PM
The auto-bailout failed to pass in the Senate. Expect
some volatile trading tomorrow and a retest of the
November lows within the next few weeks. Dead cat
bounce you might be wondering??
Thanks to Guide Postings for that bit of humor.
And in an otherwise bear market, could oil be forming something of a bottom here? The volume recently has been very indicative of such. If anything, it’s something to keep an eye on.
Thanks to Guide Postings for that bit of humor.
And in an otherwise bear market, could oil be forming something of a bottom here? The volume recently has been very indicative of such. If anything, it’s something to keep an eye on.
Market Analysis and Why Chrysler Needs To Go Under Regardless
07/12/08 08:13 PM
Last week’s rally was something that caught most
people off guard, including ourselves. The jobs
number was twice as bad as analysts were forecasting,
and it’s not as if we’ve had any decent news lately.
We think this current level of optimism is
unwarranted, and like all bear market rallies, this
one too will falter.
The S&P made a clean break through that month long trendline last Friday. What was interesting is the fact that the market opened down 200+ points after the job report and then managed to rally higher in the later stages of the day. At this point, the only thing that makes even a bit of sense is that maybe the jobs number was already priced into the market, but, honestly, who was expecting 533,000 jobs to be lost in November? I mean, we knew it was going to be bad, but not that bad. However, the charts don’t lie, and 900 could well be within reach this next week. Keep an eye on that 50-day moving average as well.
In order for us to see any sort of sustained rally over the next few weeks though, the financials need to participate. In other words, we need to see a break above $13, which is currently acting as some very serious resistance for the bulls. Volume last week was unimpressive and that monthlong trendline will also come into play here. Should we see a break of $13, the next target would be the 50-day moving average. Anything above that is being somewhat optimistic.
Next week will be an important one for sure. However, don’t let the current optimistic attitude in the markets take hold just yet because crisis is still far from over.
Written By Andy Cole
Most autos these days are reviewed on the premises of four key areas:
• Reliability
• Safety
• Quality
• Styling
Yes, I may have missed a few, but these are the one’s that most prospective buyers will consider when looking around for a car.
With regards to Chrysler, the cars that this company churns out year after year have just been horrendous on all accounts. I have to conclude that this is one auto company that must go under during this economic contraction. Let me explain.
First, the reliability is almost nonexistent. Don’t believe me? Check out this site or this one. I don’t think I’ve ever come across an auto company that has a site detailing the numerous problems related to their vehicles apart from this one. From steering problems, to broken transmissions, to defective seat-belts, if you want a car that is unreliable to nearly every extent possible, a Chrysler may just be the car for you.
And then we come to safety. Well, if you missed the defective seatbelt issue in the previous paragraph, then you may want to read that again. And then we have the reports of fire prone Chrysler minivans stemming from fuel leaks. While current Chrysler models have done well in government crash tests, the question still remains: Would you trust an unreliable car to protect YOU in the event of an accident? The answer is no and I’m sure that is an answer that would resound with mother’s everywhere.
When one thinks of the term quality in relation to an automobile, the first company that comes to mind is Toyota. Toyota have been the unequivocal leaders in quality for the average consumer. So what is quality defined as in a car? It means that when you walk out to the car, you can see that some thought and ingenuity was put into the car. It means that when you step inside the car, you can look at a nice dashboard layout with easy-to-read dials, and nicely appointed materials. The following comparison of the Chrysler Sebring and the Toyota Camry should be evidence enough of what I am referring to:
I honestly don’t even know where to start with this one. The jaunty angles for one are really a drawback on the overall flow. Also, notice the drab, tacky-looking plastic, which just seems to cover the interior of this car. It really gives off that sort of “blah” feeling, not exactly what you would want to start your day with.
Inside the Camry, however, it’s a totally different story: nice flowing lines, good looking materials, and a very comfortable looking steering wheel. I mean, it looks like a car someone might actually buy. Amazing!
Styling, believe it or not, does play a rather important role in the purchasing of an automobile. Think about it: at the end of the day, this is a car that you will have to live with everyday. Chrysler doesn’t seem to understand this:
As taken from the Chrysler site: “It’s look is undeniable with fluid lines and a striking chrome grill.” You have to wonder what they were smoking when they designed this horrific piece of garbage.
The difference is night and day really.
And the final kicker: the Toyota Camry starts at $19,145 and the Chrysler Sebring starts at $21,225 as taken from their websites.
Jeremy Clarkson over at Top Gear summed up the Chrysler Sebring convertible as the “worst car in the entire world.” I couldn’t agree more. You can read the article here.
How on earth can Chrysler possibly survive when they continue to produce such terrible cars? And to think that Congress is considering giving them a loan to stave off bankruptcy? This is one auto company that just needs to go away and justice will be done when it finally happens. The point is that the “so-called” American auto companies are not what they used to be. They have been producing a lot of garbage for years now and it is high time that they paid the consequences. I say no to any bailout of these companies, because at the end of the day, this recession will take its victims regardless of how much money we throw at them. And speaking of that, what happened to the $25 billion that was initially proposed? Or wait, is it now $35 billion? I can guarantee that the big three will be back begging for more money from Congress in 2009 and you can take that one to the bank.
The S&P made a clean break through that month long trendline last Friday. What was interesting is the fact that the market opened down 200+ points after the job report and then managed to rally higher in the later stages of the day. At this point, the only thing that makes even a bit of sense is that maybe the jobs number was already priced into the market, but, honestly, who was expecting 533,000 jobs to be lost in November? I mean, we knew it was going to be bad, but not that bad. However, the charts don’t lie, and 900 could well be within reach this next week. Keep an eye on that 50-day moving average as well.
In order for us to see any sort of sustained rally over the next few weeks though, the financials need to participate. In other words, we need to see a break above $13, which is currently acting as some very serious resistance for the bulls. Volume last week was unimpressive and that monthlong trendline will also come into play here. Should we see a break of $13, the next target would be the 50-day moving average. Anything above that is being somewhat optimistic.
Next week will be an important one for sure. However, don’t let the current optimistic attitude in the markets take hold just yet because crisis is still far from over.
Written By Andy Cole
Most autos these days are reviewed on the premises of four key areas:
• Reliability
• Safety
• Quality
• Styling
Yes, I may have missed a few, but these are the one’s that most prospective buyers will consider when looking around for a car.
With regards to Chrysler, the cars that this company churns out year after year have just been horrendous on all accounts. I have to conclude that this is one auto company that must go under during this economic contraction. Let me explain.
First, the reliability is almost nonexistent. Don’t believe me? Check out this site or this one. I don’t think I’ve ever come across an auto company that has a site detailing the numerous problems related to their vehicles apart from this one. From steering problems, to broken transmissions, to defective seat-belts, if you want a car that is unreliable to nearly every extent possible, a Chrysler may just be the car for you.
And then we come to safety. Well, if you missed the defective seatbelt issue in the previous paragraph, then you may want to read that again. And then we have the reports of fire prone Chrysler minivans stemming from fuel leaks. While current Chrysler models have done well in government crash tests, the question still remains: Would you trust an unreliable car to protect YOU in the event of an accident? The answer is no and I’m sure that is an answer that would resound with mother’s everywhere.
When one thinks of the term quality in relation to an automobile, the first company that comes to mind is Toyota. Toyota have been the unequivocal leaders in quality for the average consumer. So what is quality defined as in a car? It means that when you walk out to the car, you can see that some thought and ingenuity was put into the car. It means that when you step inside the car, you can look at a nice dashboard layout with easy-to-read dials, and nicely appointed materials. The following comparison of the Chrysler Sebring and the Toyota Camry should be evidence enough of what I am referring to:
I honestly don’t even know where to start with this one. The jaunty angles for one are really a drawback on the overall flow. Also, notice the drab, tacky-looking plastic, which just seems to cover the interior of this car. It really gives off that sort of “blah” feeling, not exactly what you would want to start your day with.
Inside the Camry, however, it’s a totally different story: nice flowing lines, good looking materials, and a very comfortable looking steering wheel. I mean, it looks like a car someone might actually buy. Amazing!
Styling, believe it or not, does play a rather important role in the purchasing of an automobile. Think about it: at the end of the day, this is a car that you will have to live with everyday. Chrysler doesn’t seem to understand this:
As taken from the Chrysler site: “It’s look is undeniable with fluid lines and a striking chrome grill.” You have to wonder what they were smoking when they designed this horrific piece of garbage.
The difference is night and day really.
And the final kicker: the Toyota Camry starts at $19,145 and the Chrysler Sebring starts at $21,225 as taken from their websites.
Jeremy Clarkson over at Top Gear summed up the Chrysler Sebring convertible as the “worst car in the entire world.” I couldn’t agree more. You can read the article here.
How on earth can Chrysler possibly survive when they continue to produce such terrible cars? And to think that Congress is considering giving them a loan to stave off bankruptcy? This is one auto company that just needs to go away and justice will be done when it finally happens. The point is that the “so-called” American auto companies are not what they used to be. They have been producing a lot of garbage for years now and it is high time that they paid the consequences. I say no to any bailout of these companies, because at the end of the day, this recession will take its victims regardless of how much money we throw at them. And speaking of that, what happened to the $25 billion that was initially proposed? Or wait, is it now $35 billion? I can guarantee that the big three will be back begging for more money from Congress in 2009 and you can take that one to the bank.
Friday Could Get Interesting
04/12/08 06:14 PM
Tomorrow could get very interesting for a number of
reasons, first being the jobs number, and the second
lying in the charts. The jobs number will be
terrible. That’s already expected. What matters is
how the market reacts to it:
This market is going to break either to the upside or the downside with some serious force in the near future. The path of least resistance remains lower, and based upon today’s action, there is a higher probability of it breaking to the downside than the upside. The daily charts are beginning to show some signs of a trend reversal to the negative and the fact that the trend-line from September to December has held consistently makes us bias-bearish going into tomorrow.
The XLF is in a similar position. There was a failure to make higher highs, a failure to break resistance at $13, and that last shooting start candle is just one more bearish indicator to add to the rest of them. The path of least resistance is lower. We’ll see what happens Friday.
We’ll be doing a post on why we believe Chrysler should fail later this weekend.
Good luck.
This market is going to break either to the upside or the downside with some serious force in the near future. The path of least resistance remains lower, and based upon today’s action, there is a higher probability of it breaking to the downside than the upside. The daily charts are beginning to show some signs of a trend reversal to the negative and the fact that the trend-line from September to December has held consistently makes us bias-bearish going into tomorrow.
The XLF is in a similar position. There was a failure to make higher highs, a failure to break resistance at $13, and that last shooting start candle is just one more bearish indicator to add to the rest of them. The path of least resistance is lower. We’ll see what happens Friday.
We’ll be doing a post on why we believe Chrysler should fail later this weekend.
Good luck.
Rally Comes Out Of Nowhere, But The Trend Is Still Down
02/12/08 10:35 PM
Today was a very interesting day. Anyone that was following the daily charts will know what we’re talking about. The rally came at a point where nearly every daily indicator was pointing down. What can we expect going into tomorrow? Well, the rally today came on relatively decent volume. 850 continues to be an area of resistance and while we could test 900 tomorrow, the short-term trend is continues to be down and we would look to short any rallies like the one we saw today.