Sign Up to Receive an Email Alert when Technical Talk is Updated
Although we disagree with the idea that "the tape tells all," it is important for all traders to stay on top of key technical happenings on the charts. Below is our current "executive summary" take on the State of the Tape.
Technical Talk: December 23, 2010
Current Strategy:
While the boys and their fancy computer toys (did you see the article about the new hedge fund that is actually managing money based on your Twitter Tweets?) can and probably will push the market around a bit over the next week, the bottom line is that the trend is up but due for a rest. Thus, I would not be at all surprised to see at best a "sloppy" period or at worst a modest pullback from now until the end of the year.
We would consider being short-term buyers at: A pullback to test 1245(ish) on S&P 500
We would consider being short-term sellers at: A close below 1232
Trend and Momentum Indicators:
Short-Term Trend: While the short-term trend remains positive this morning, we are starting to see some signs of early weakness. The question is if the dip-buyers will come in later today...
Intermediate-Term Trend: Nothing new (again!)...The intermediate-term trend remains positive.
Market Internals: While our TBC models remain positive this morning, some weakness could cause our hair-trigger short-term model to downtick to neutral.
- TBC = Trend-and-Breadth-Confirm Model
Market Momentum: NO change in our momentum models today. Two of the three models remain in positive modes while the third is moderately positive.
Support/Resistance Zones for S&P 500:
- Current Support: 1240ish
- Current Resistance: 1275ish
Early Warning Indicators:
Overbought/Oversold Condition: Stocks remain overbought. At this stage however, we would need to see a reversal of this condition in order to become negative.
Investor Sentiment: No change... All eight of our sentiment models remain in their maximum negative position. Again, the trick to these "get ready to go the other way" indicators is to wait for them to reverse after reaching extremes.
Chart Watch:
Below are snapshots of the two main charts we watch closely each day from a technical perspective. The indicators we display on the charts below include: 50 day weighted ma (purple), 18 day weithged ma (cyan), 10 day weighted ma offset by 2 days (orange), 4 day weighted ma offset 2 periods (dashed blue) and stochastic %K using 14 and %D.
S&P 500:
NASDAQ Composite
The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of TopStockPortfolios and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided “as is” without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
The information contained in our websites and TopStockPortfolios publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered with the U.S. Securities and Exchange Commission as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.
