Short-term prospects for continued upside were dealt a blow today as prices retreated, and the blow may prove mortal should the market fail to advance tomorrow. The major averages failed in their attempts to resist the gap up formed last week. Some averages closed this gap completely, and many formed new ones with this morning's opening gap down. Momentum is to the downside. In addition, the S&P broke down below yesterday's channel. However, the medium-term bullish picture hasn't changed, with the 50-day moving averages flattening and shorter-term averages pointing up. After a week of encouraging, but unfulfilled, action, it may be the case that lower prices are ahead in the next 3-5 days, although the intermediate trend is up and could exert its influence at any time. The SEC debates reinstatement of the uptick rule tomorrow, which could potentially change the rules to the detriment of the bears and move the market. Note that Friday the markets are closed in observance of Good Friday.
No changes in our holdings.
| Current Holdings |
| Ticker |
Basis |
Closing
Price |
Perf. |
Sell-Stop |
Additional Exit Guideline |
Chart |
| MELI |
17.39 |
19.17 |
+10.2% |
17.99 |
N/A |
Chart |
| CLS |
3.24 |
4.40 |
+35.8% |
3.71 |
Consider selling on a close < 4.25 |
Chart |
A few charts in case the buyers step it up tomorrow.
New Trade Ideas
| Ticker |
Entry |
Exit A |
Exit C |
Chart |
| MET (Metlife) |
25.76 |
23.99 |
N/A |
Chart |
| CMED (China Medical) |
16.64 |
15.99 |
15.58 |
Chart |
| LDK (LDK Solar) |
7.64 |
6.49 |
N/A |
Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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