NQ pulls back at 1829.25, right under NDX 1825. Seems like it was a sell signal. Not quite 1830, but we will take it as a high. One hour and twenty minutes to go before the early close. I can't imagine anyone wanting to be long over the weekend, but there has been lots of hedging with those cheap, cheap puts. If this market sells on Monday, those carefree put sellers could be in for a surprise.
Obviously if retailers have a gangbuster weekend, we could have the opposite reaction from last year, which saw a post Thanksgiving sell-off, but gap and crap is not out of the question either, no matter what the news. Just keep in mind that with end of month coming up, many funds will want to look like heroes and have techs in their portfolio, even if they just have started buying them last week. We could finally see some real volatility come back and good trading.
The prospect of lower rates is sending small caps higher, but again, I think the Feds will try and prop up the currency by not lowering rates for some time.
Overall, put a gun to my head and I still think the NDX chart is topped out short term and I would get very defensive now, at least until we get a decent pullback.
Gold is up almost 15% since October lows and that has beaten any major equity index out there, even NDX.
Obviously if retailers have a gangbuster weekend, we could have the opposite reaction from last year, which saw a post Thanksgiving sell-off, but gap and crap is not out of the question either, no matter what the news. Just keep in mind that with end of month coming up, many funds will want to look like heroes and have techs in their portfolio, even if they just have started buying them last week. We could finally see some real volatility come back and good trading.
The prospect of lower rates is sending small caps higher, but again, I think the Feds will try and prop up the currency by not lowering rates for some time.
Overall, put a gun to my head and I still think the NDX chart is topped out short term and I would get very defensive now, at least until we get a decent pullback.
Gold is up almost 15% since October lows and that has beaten any major equity index out there, even NDX.
This entry was posted
on Friday, November 24, 2006 at 11/24/2006 11:38:00 AM.
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