The Weekly Report

As was mentioned in the last post, I will not be able to make daily reports for at least the next two months. Not reporting as often as I had will also increase the amount of information I have to pull from. So my reports will be focused on the U.S. markets only. Sorry, if there were any international readers, but I have no idea if you are out there since I haven't gotten any comments. So until I do, it is only my opinion that counts.

U.S.
Dow => 7776.18, +496.93
Nasdaq => 1545.20, +53.94
S&P => 815.94, +4.63

Mine
AMD => 3.37, +0.05
F => 2.84, -0.04
NG => 2.68, +0.32
AMD PG => 0.28 (Sold to Close 3/24/2009), -0.18 (Total)
F PG => 0.40 (Sold to Close 3/24/2009), -0.35 (Total)
FPL DI => 5.60 (Sold to Close 3/24/2009), +3.75 (Total)

Trend Report
Friday, the U.S. markets closed down for the day, but not enough to eliminate a third bull week. This shows a continued rally of the bulls but it also puts all of the indices into their respective resistance zones marked by the levels of seven weeks ago. So what does that mean?

Meaning
First let's describe a resistance zone. A resistance zone is not a specific point or value. I would say that a safe assumption is a point value +/-5%. For example, the Dow is approaching the 8000 point level, where it stalled around for a few weeks before dropping through. So the Dow resistance zone is 8000 +/-5% (400 points), a range of 7600-8400. Currently it is in the range at 7776.18.

For the Nasdaq it is 1500 +/-5% (75 points), a range of 1425-1575. Currently it is in the range at 1545.20. For the S&P it is 800 +/-5%(40 points), a range of 760-840. Currently it is in the range at 815.94.

Lets continue. Because I am a swing trader, I use one chart interval for trend and a tighter one for timing. In this more volatile market I have been using the tighter intervals of, weekly for trend and daily for timing. The trend report above was done using the weekly chart information, so for timing I am obviously using the the daily charts. But I am also using the indicators that I mentioned several times before in my previous posts.

Timing
So on the daily chart of the Dow we have a strong, but weakening RSI of 58.19. The Stochastic is bullish, but has been overbought for over a week. And the MACD is also bullish, but the histogram is showing signs of increasing weakness.

The Nasdaq has a similar report. The RSI is strong, but weakened to 58.6. The Stochastic is bullish, but has been overbought for over a week. And the MACD is also bullish, but the histogram is also showing signs of increasing weakness.

Finally, the S&P. The RSI is strong, but weakened to 57.65. The Stochastic is bullish, but has been overbought for over a week. And the MACD is also bullish, but the histogram is also showing signs of increasing weakness.

Conclusion
All though it has not occurred as quickly as I was previously expecting, this rally is going to have a short life. I am expecting stagnation at this zone and then a pull back to the lows that were put in three weeks ago. I am also hoping that the markets will bounce from those lows and then blow through their current resistance zones. But currently the timing indicates that research into Puts and Shorts should be the daily routine. Look for your ins and prepare your outs for your Calls and Longs.

That is my opinion, you can take it or leave it.

Disclaimer: I am not a stock broker; I am not a financial advisor; I am not recommending to you what to buy or sell. I am just an opinionated investor. If you decide to follow in my footsteps you are taking risk. It is inevitable that I may be wrong. So if you are going to follow in my footsteps that is your own personal decision. I am not responsible for any loss that you may, and probably will, incur regardless of my opinion.