November 26, 2008

Market Review and Commentary for November 26, 2008

DISCLAIMER: These are trades I am doing and may not be right for
you. Use your own Due Diligence when making financial decisions of
your own choosing. This is NOT a recommendation of any security.
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The “Obama Rally” continued AGAIN today… as I mentioned in last nights video – no one would have expected a rally today. Everyone expected a down day. The VIX went straight down to new short-term lows and dropped below the rising trendline:

However volume was EXREMELY light on the DOW:

That does not mean the rally is over, but a pull back is certainly overdue.

You might also notice on the screenshot above that we are very close to a downward sloping trendline. That could be the area we retreat and pullback from.  The area of possible support is the 8501 level – which is the 200 monthly moving average line.

Any retreat below the 8500 level after this advance would be cause for some concern…

I want to wish each and every one of you a Happy Thanksgiving in the USA or elsewhere – and to all my clients: PEACE and HAPPINESS ALWAYS.

THERE’S NO VIDEO TODAY

Trade With Confidence

PS_ In some instances you should be worried about low volume and some times you should not. The next update will be the Sunday “Weekend Review” … in it I will share with you my ‘theory of volume’ that might help you understand what volume means and how it could help you in your trading.