lots of bearish engulfing on the weekly charts

Discussion in 'Stocks' started by billyjoerob, Jun 27, 2010.

  1. For the tech stocks.

  2. VMW.

    The stocks are more bearish than the indexes would indicate.
  3. It shows up loud and clear on the XLK chart. TYP is one way to play it.
  4. Bearish enguilfing could be bulish.
  5. Can you elaborate please? (If you mean it is bullish because I'm shorting I guess you know how I feel about that: GL to you :p)
  6. It depend on the stage of the move. Right now the SPX, NDX and other indexes are at 50 MA support.

    The best bull moves starts after the bear trap. I think that last week action was a Bear trap. Some people call this pattern as PVP reversal (daily chart). You can see reversed head and shoulders forming on the $RUT. Dow theorists call it higher low after higher high. But the prove will be on Monday - Wed of the next week. If market breaks the 50 MA support on the Daily charts - all bets are off. We are going for March high test otherwise.

    I usually right 6-7 times out of 10. So rely on your own conclusions.
    If you think that the market going down based on the bearish enguilfing alone - you might be wrong. I would advise you to use a mental stop and good luck to all.