So….. When does the Market Take a Breather? (Temporarily That Is!)
Is the market getting toppy and time for a brief consolidation period or are we just getting started?
First and foremost, no I do not want the market to top, I’d love it to keep going up up and up and never look back but unfortunately that’s not the way things work. We must face squeezes, pull backs, consolidation phases, force panic sells, force short covers, all part of what goes into the building of the charts you see below and give us technical traders something to shout about.
Do I think top for a lot of the big boards is tomorrow? Not sure.
TWO SCENARIOS.
First: Yes I do because such a strong day today should be followed by a gap the following day. This usually encourages profit taking, and if a domino effect occurs could start a sell off through the day.
Second: After such a good week I doubt any one at wall street wants to end the weekend on a down note so they may be rather optimistic heading into the weekend and we see even more squeezes tomorrow setting Monday up for the big gap and crap day. (Keep in mind this is not by any means saying its topped for good, as I said pull backs are healthy and help long run sustainability).
GOOG - as I’ve said once this consolidates its going to have a magnet towards $600, ok we are $7 dollars away .. what now? What happens when it hits $600. Are investors content? Do they move on? Exactly! Sure we’ll probably see upgrades back to the $650 to 700 range we’ll probably see a squeeze Friday or Monday over $600 but then what? ……. It’s going to need to consolidate. ($610-620 possible on a good squeeze - but will test $585-590 after any big squeeze like that IMO)
More GOOG blogs HERE HERE
MA - Again another psychological target $300 right away the first thing you think of when its breaks into the higher half of $200 (aka $250+). $310 possible on the squeeze then to retest under $300 ($285-290)
More MA blogs HERE HERE and HERE.
RIMM - The big break all along that it can’t get is $130 this one may be a bit different. It’s been consolidating each move it makes. $130 seems like the top here, once it breaks… peoples eyes will be glued to $150 and RIMM will be well on its way to becoming the next $200-300 dollar stock.
More RIMM blogs HERE HERE HERE and HERE
BIDU has been having a bit of trouble lately breaking out too much (probably because of the gains its been holding without a dip for the past month). If the markets dip this will restest $355. If it continues to consolidate the big break here is $380.
BIDU blogs HERE
May 4th, 2008 at 9:50 pm
[…] quite the moves over the past two weeks… but RIMM on the other hand smashed through $130 as we anticipated and held the gains through the day.. I expect more of a move this week - but it may want to test […]