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Thursday, December 9, 2010

Today no news was good news

SPX made a HH and HL  and closed positive thats a positive for the markets.  Range was only 8 points.  SPX made the high of the day around 7 and low of the day around 9 and slow rally that took the spx to close at 1233 on the dot.  It was only 1.71 from the top.  It was another lack luster day. 
The chart on the left is FAZ once a high flyer it has fallen on real hard times.  The low was 10.11 and it closed at 10.18.  I had said back in April that FAZ would go to single digits by the end of the year and here we are.  This chart look pitiful once the rally channel was broken the decline accelerated.  The bottom of the channel is around 8.00.  Old low was made on 5th of NOV at $10.53.  This stock has proved short at new low better than anything. 
The chart on the right is FAS the other side of FAZ.  Its a hourly chart.  The GANN line 1x8 is busted and IMO the decline is over.  FAS is now in full rally mode.  It is slightly above the 88% point where a number of turns have happened before and it is also at the top line of the channel.  There should be hit coming up.  I would go long at the median line around 25 if and when it gets there and more positively if it should get to 23.75 the bottom of the channel.  I believe it would have a tough time going below 25.

The chart on the left is TNA.  It went slightly over the 88% and is at the top line of channel.  I have deliberately doubled the channel.  Many a times what I think as top of the channel turns out to be only half the channel.  This too is projecting a pull back.  I would say no lower than 64.  The upside is quite dramatic to 87.  These 3x are difficult to fit into a EW count.  But that 87 should coincide with the spx 1290 top early second week on Jan.  
TNA did have a early opening at the high of the day that is not positive for TNA.  I am still short but will cover before close .  With the weekend coming I wouldn't want to be short.
Also we are coming off a new moon on 5th Dec. going towards full moon on 21st of Dec.  The  adage is market grows as the moon grows and declines as the moon wanes.  
Thanks for reading my blog and offering me the encouragement

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