Sunday, March 28, 2010
Could Have, should Have, Would Have
This being the end of the week It might be worthwhile to see what happened. We will use FAS. The FAS made a higher high and a higher low and closed higher. Right there the trend is intact. The high happened late in the week The short term DOMA 77 did not hold and we are approaching the 172 DOMA. The week prior the market acted almost the same. The rally started at 86.31 and ended after 10.53 points at 96.84 the subsequent decline was to 89.64 which was 7.2 points or a 68.3% "correction" of the rally. That is enough and quite a bit.
This last the rally was from 89.64 to 103The 68.4% erosion is 9.13 and 103-9.13 puts us at 93.87. I would watch this level quite carefully. The market correct itself as it goes along not waiting for a 20% drop in the value of the security. Each move is corrected before next move begins. Our current drop 103 to 95.94 this week is 7.06 is 53% of 13.36 point move which is within Gann guidelines. Should we get a buy signal DOMA 77 cross to upside and a DMRR 3.2% I would be buyer for short term.