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Giving the benefit of the doubt to the Bears

Posted By Barry Ritholtz On August 6, 2003 @ 10:08 am In Finance | Comments Disabled

James “Rev Shark” De Porre writes a nice trading diary [1]for TheStreet.com’s premium product, RealMoney.com [2].

He had some worthwhile comments this AM regarding the technical picture of the major indices, using 50-day simple moving averages as a rough way to measure momentum.

Jim notes that “when a stock breaks below that level it reaffirms the problems that a break in the trend line is indicating.”

· The S&P 500 has broken its trendline and its 50 dma;
· The DJIA has broken its trendline and its 50 dma;
· The Nasdaq has broken its trendline but is still holding its 50 dma;
· The Nasdaq 100 has broken its tendline and is holding its 50 dma;
· The SOX is holding both its trendline and 50 dma, which is a positive. (Watch this group closely. If it takes out support it bodes poorly for the broader market, particularly the Nasdaq);
· The Russell 2000 has broken its trendline but is holding its 50 dma. (Small-cap should lead a bounce so watch this group)

He’s short the QQQs, and thinks there are “plenty of technical problems out there”


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2003/08/giving-the-benefit-of-the-doubt-to-the-bears/

URLs in this post:

[1] trading diary : http://www.thestreet.com/p/dps/td/tradingdiary1.html

[2] RealMoney.com: http://www.thestreet.com/p/index.html

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