12 April 2008
Dow Candlestick and RSI(2)/RSI(14) Chart
I have made no trades for a while, as the market finally turned downward, thanks to GE surprising Wall Street with its crap earnings. Currently, at today's closing prices, my positions in DXD and QID are basically back to where I entered into them. FXP, well, that's still underwater, for now.
It's interesting to see that the Dow was unable to break out of the top end of the range, as shown in the above annotated candlestick chart. Now that earnings season is underway, and Dow components like AA and GE have disappointed, I'm still confident that the market is headed back towards the bottom of the range (11,800).
Moving onto my RSI(2)/RSI(14) chart, you may notice that today's move placed 20 out of 30 Dow components into green oversold territory. While this may seem extreme, if you look at the April 1 column, you'll see that 28 out of 30 components were in red overbought territory.
Posted by WershovenistPig at 12:21 AM