Bank Stress Test & Capital Concerns Sending Us Lower

April 28th, 2009

After a completely boring day yesterday, let’s all hope things start moving faster today. Judging by another pre-market morning with futures down over 1% again, we may just get what we have been hoping for – a sustained sell off. We have been moving sideways for over a month now and we need a new direction. Oil is again continuing it’s slide as I have said over and over again it would. Member’s and I will be entering some new short trades this morning. Of course all of these short are what I like to call “Low Hanging Fruit.” Honestly it’s like cherry picking the best of the best and profiting all the way down. They are all way over-bought and hitting major resistance zones. Can’t get any easier than this!

 

Taking a look at the NASDAQ outlook – you can see on the chart below in Blue that it has been hitting very hard against the underneath of the trend line in black. Notice that it’s touched the resistance zone nearly 3 times exactly before moving away. Now that we are more getting stretched, a natural technical pull back would be to at least 1,500. I would be watching this index very closing out there traders!

 

compq

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