ETF SWING & DAY TRADING

[kenwong]

Subject: $NASI & $BPCOMPQ charts

Vestor,

It does look like the NASI has slowed (see chart below). And, take a look at the $BPCOMPQ ... definitely a bullish reaction on the chart.

Right now, PM2x(v.8) is reading long but it's a little freaky holding long positions when almost everyone in the "iHub & CS Members Market Poll" (http://tinyurl.com/e36pz) is short. Other info that supports probable downside includes: 1) Nocona's "QQQQ/RSI 5 Hourly" is currently short, and 2) it's Friday ("Sell on Friday, Buy on Monday").

Might liquidate my long positions in the morning ... and reevaluate about what to do near the close.

Ken

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Posted by: Vestor_2000
In reply to: None Date:9/2/2005 6:34:58 AM
Post #of 2438

$NASI vs $NYSI

For what it is worth, I favor the $NASI over the $NYSI. Though the latter has turned positive (on a daily, not a weekly basis), you have to consider that, of the 2,800 stocks on the NYSE, about 1,400 are preferred stocks, closed-end funds and foreign ADRs, not exactly your everyday trading vehicles. The $NASI on the other hand represents about 3,300 companies in technology, communications, retail, etc. Now, having said this, the rate of decline on the $NASI has slowed dramatically and looks like it could reverse, much like it did for a short period back in late January. Separately, the $BPSPX is just .40 from a sell signal, so I believe caution still is warranted. While we shouldn't read into things, this does perhaps play into Pokersam's thoughts about an S&P 500 rally to 1225-1230 and a sharp reversal, especially if we get the "chop" he predicts for the next couple of weeks or so. Just a thought.