Sunday, March 21, 2010

No Man's Land

No man's land is a term for land that is not occupied or is under dispute between parties that will not occupy it because of fear or uncertainty.
From Wikipedia

 

IWM 240m

IWM Daily



The IWM (Russell 2000 ETF) charts above pretty much sum up the current state of market direction, still Long, but barely so.  Weakness early this week will likely trigger a host of Trend Reversals from Long to Short, while anything but weakness will keep the current Long Trends in place.  There are no high probability trades here, not yet.

4 comments:

MMarino said...

Allen,

Why do you suggest to us a handfull of biotech's on the weekend of a healthcare reform vote? Healthcare companies could be slaughtered when the idiot running the country signs his name on the bill.

I fully understand were following the trend here, but fundamental analysis may be showing a red flag here?

-Marino

Allan said...

Marino- there is no way to predict the effect of this stuff on the stocks, so why bother trying?

Anonymous said...

Though his mind is not for rent
Don't put him down as arrogant
His reserve, a quiet defense
Riding out the day's events

Catch the mist, catch the myth
Catch the mystery, catch the drift

The world is, the world is

He knows changes aren't permanent
But change is

And the energy you trade
He gets right on to the friction of the day



Geddy Lee

Steve said...

RE: Health Care

I could be wrong here (and it wouldn't be the first time), but it seems to me that the health care bill should help most health care and bio-tech stocks. Adding 32 million or so insured people may cost tax payers more (the jury is out on how much) but it should increase the need for medical services, and more specifically...drugs.

Now, I still believe that many of the stocks in the industry may get hit due to the PANIC stories that Fox News and other idiots have been peddling. However, when the dust settles the real big money will figure out which side to bet on.

Well, unless Prechter is right and we're all gonna die...