Friday, September 21, 2007

Dow-n-trend estabilished

It was, I guess, estabilished for some while, but it only became obvious to me today. Mr. Hulbert was right, that really was a triple-top in July. As I see it now, the rally is on its last legs. I give Dow Jones Industrial Average a week to hang in the current range of 13750-14000, and it's only down from there. So far, I sold into this rally my OXY (64.5), ERTS (56.09), and NOK (34.09). I'd want to let go of LUKOY (90.45), EWT (18.43), NTDOY (66.19), COP (92.19) and AMD (14.91). Set the limit trades, but as usual, I may have guessed the tops for those wrong. We'll see. I have my doubts on AMD, though, it may go higher since its Barcelonas are selling very well. Newegg is charging > 100% premium on preorders, and no evaluation server can be had from one brand name top-5 PC server vendor.

Another issue that remains, why do I and should I hold on to stoks that have losses currently? USU and NFLX are the loss leaders... One flawed line of thinking is, they're so down, they can't go any lower. I just use this excuse to cover up lack of courage, I know.

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