Tuesday, December 18, 2007

Pressure Point

I'm plenty active here today as I felt forced earlier to hedge this now-growing portfolio (by getting long NDX-Ultrashort QID). But I've already taken profits on the QID (nothing too exciting), as I just don't sense the market trouble is serious at this juncture.

Volume is rising today, but still light and breadth is not at all dramatic. Yesterday's price decline in the indices was sizeable and leadership names took a fair hit, but there was so little volume I think you can safely say it is more a lack of buying than any serious institutional selling we are seeing.

I'm still looking at names to enter at good spots, but I still am waiting for the market to firm before really sticking out the neck. Also, if we are not off the day-lows later in the session I will re-hedge here (likely w QID again) and I may unload a name or two, depending.

I was stopped out of AAPL earlier today at 182.78 (for now), but I swapped that into a tranche of FWLT (148.83); FWLT has touched the 50-day today and so far is holding above that level (147.45), even though the NDX continued driving lower.

NDX leaders ISRG, MICC, BIDU, INTC, AMZN, ORCL, GENZ and GOOG are all dealing with their 50-day's today; and all are below that level at moment. The Nasdaq meanwhile is fighting with its 200-day m.a.

GOOG is >12 points below its 50-day at this writing (50-day = 672 at moment). When you see GOOG recapture that 50-day, I will wager a dollar you will see this market trend higher through to the 31st.

And if you don't...I'll be wishing I had only wagered a dollar.

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