Tuesday, December 26, 2005

RS weakening: energy (OSX, XNG, alt. energy, coal). Sell into strength, reopen positions if RS emerges 1/06.

RS gaining: XLB, XLV.

Market Strength 10-day high: ~2530
Market Strength 10-day low: ~2406 (12/27 monday)
Market Strength intraday stochastic: 0, trend falling

Nasdaq 10-day high: ~2270
Nasdaq 10-day low: ~2215
Nasdaq 10-day stochastic: 22.5, falling

Breakout Strength, 10-day stochastic: 75, rising

Outlook: Watch for weekly breakdown. Volatile moves, SPX:TLT ratio showing signs of confirmed downtrend. Sell into stength, tighten stops. Wary of false breakouts. Energy breaking down.

Find potential long and/or short plays for the first week of January.