Waiting To Pull The Trigger On GE

February 25th, 2009

Just as I was expecting, a slight pull back in the markets today. It even looked like a down right sell-off earlier this morning, but the bullz found some solid ground again and came back near the end of the day. I did want to mention that on the daily chart we formed another high wave doji pattern – small real body with longer upper and lower shadows – which just signals more indecision, but at least we didn’t have the 2% drop right? As for the hedged portfolio of mine, today was rock solid with very respectable gains all around which is exactly what I’m looking for in a volatile market like this.

 

I have to say that the chart of GE looked very interesting today. The spike in volume coupled with how oversold it is makes me think this could easily rally back to the resistance line drawn around $12.00 and complete a clean retracement. Still, I just cannot find it in myself to take a long position yet in it. Maybe tomorrow will be different, but right now these doji patterns have me on the sidelines.

 

ge1

 

On a FOREX note, the GBP/USD is looking pretty weak as it moves into contact with it’s 50-day moving average. We also got a very clean bearish engulfing pattern today following some longer upper shadows the last couple of days. I think this pair could be back down to 1.35 in the blink of an eye.

 

gbp

 

I have a religious obligation tonight that will keep me away until later this evening. I will however be back at sometime with a new Trading Video, so check back frequently. Happy Trading!

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