As yesterday’s slide caught a few trader’s off guard, today’s mirror image incline in the Nasdaq probably shocked a few too. Fast rallies can occur in bearish downtrends. I’m going to see how the trend line is handled. Trade above, followed by quick trade below, will be a sign for some ETF shorts. Will there be a third leg down?
The thinly traded ETF, DUG – Ultrashort Oil and Gas Proshares, has found recent support at the 50 day moving average. The 60-minute chart takes the noise out.
Reverse splitter TMTAD – Transmeta Corp., is trading like an IPO. I bought it’s first higher high, after it’s first pullback.
{ 2 comments… read them below or add one }
I think the most interesting action will be when investors and traders come back after the holiday weekend. Beginning Tuesday it should be expected there will be some more volume on the exchanges, and a more clear trend in stocks may be established.
I’d agree with that Aaron. This pre-holiday, choppy action, sure isn’t a trader’s best friend.