November 2003 Archives

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.

If you're interested in doing some research into the VoIP space you may want to start at Jeff Pulver's weblog. He's the co-founder of Vonage and several other organizations, and will be speaking to Congress at tomorrow's VoIP hearing. I especially like the post of his that points out the lunacy of Thanksgiving week stock moves. As the article that Jeff links states, moves during this week can be greatly exaggerated because many of the 'pros' are on vacation.

I can't say that the VoIP stocks will roll over and die tomorrow, but I sure wouldn't want to do anything with them besides daytrading them. I imagine they'll be very active tomorrow and I, and a hell of a lot of other short-term traders will be looking to make some cash off of these bad boys, whether they move up or down. Prepare for a wild ride.

MaoXian is posting some real-time commentary on the action in the VOIP plays (EGHT, NTOP, VOCL, DDDC, VTEK) today. Seems like everybody is watching/commenting on these things today. This action is reminding me so much of the good old days (1999 - 2000) when Briefing.com and/or CNBC could mention a story and cause a stock to double in a matter of minutes. (Briefing.com's 10:00 ZTEL comment caused a double in that stock in 25 minutes. Big fun!)

Today was a rout for the bulls. The market gapped up and never looked back. Todays's rally brought all the major indices back above their 50-day moving averages. The bulls really need to make a higher high on this move or we may be in danger of making a head & shoulders top. There are a ton of economic reports due out this week so they may very well determine where we head next. Barring any disappointing data, I still think that we're destined to touch 2,000 on the NASDAQ.

We've now had 3 days of thrashing around the 50-day moving averages on the indices. I'm getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless we get some really bad news it's hard to think that we won't get some kind of bounce here.

There have actually been a lot of bullish reversal candlestick patterns made over the last two days. Yesterday made a lot of inverted hammers and two days ago there were a lot of bullish harami patterns in individual names.

The 50-day moving averages were broken across the board today. The S&P and Dow looked as if they'd hold theirs until the last few minutes of the day. Those two indices are still very close to their 50 DMAs, so they could easily get back above them. The NASDAQ-100/QQQ looks the worst of the bunch -- it's almost 2% below its 50 DMA. So it's looking like the August-October leg of this uptrend is over. The longer term uptrend is still very much intact, as evidenced by the 200 day moving averages. The NASDAQ is 250 points above its 200 DMA. So we may be in for a period of bouncing around somewhere between the 50 and 200 DMAs for a while.

You know I hate these gap-up openings... especially after such an obvious set-up like that 50 DMA bounce. That's why I keep Rule #1 taped to my monitor. This looks like a good day for it. We're still in the green, but a lot of stocks are below where they opened. Hopefully (for the bulls) this will just turn out to be a gap closing move and the indices will bounce off of yesterdays highs and/or closing levels.

Last night when I mentioned looking for a bounce around the 50-day moving averages I had no idea we'd get there this quick. It's clear that technical traders went to work today, once again buying at that popular moving average. This is the third time since late September that the indices have found support at their 50 DMAs.

It's almost getting too predictable. But before the bulls start the victory dance let's see if they can create some follow through to the upside.

Once again I've got a list of long candidates for tomorrow, most of which made hammers and/or successfully tested their 20 or 50 DMAs. I like the risk/reward on this group so I'll be buying if they take out today's highs.

I just noticed a surge in hits over the last hour. Turns out that somebody on the PrudentBear.com forums linked my October post about the (alleged) broadening top pattern. It's good to see that there are still a substantial number of bearish people in the market... I was thinking that they'd all been washed out. I'll have to poke around PrudentBear to see what the 'Bear Case' is these days.

Once again the market ran into considerable selling pressure at the November highs. Friday saw relentless selling which brought the indices back to the bottom of the November range. Once again I'm not seeing much of anything that I'd like to trade. I don't see that there's much to do but wait for the range to be broken. I'd still like to see a deeper sell-off in order to find some good long entry points. If we keep selling off this week I'll be looking for a bounce at the 50 day moving averages on the major indices.

So far the last few days is looking like a textbook pullback to support. Since we got that bounce at the middle Bollinger Band and the stochastic is still in oversold territory. I think it makes sense to at least expect the upper Bollinger Band to be hit. That line now sits just below 2,000 on the NASDAQ. If the stochastic reaches overbought territory again, like it has on every other bounce since the spring, we should get well beyond 2,000. We'll see.

The futures aren't agreeing with my read this morning though, as the market's set to open lower today. I'm going to leave my stops right where they were yesterday and see if I can ride this down move out.