US - Market Direction 01 (May 08 - Jul 08)

[Cherry]

Hi Millionairemind

Thanks a lot. It is a great help.

May I ask you a few questions, please?

1. What is the difference between NYSE and DOW and S & P?

2. "I am just sitting on the side trying to either go long if the rally attempt succeeds". At which point should the Nasdaq reach, then you would consider the rally succeeds?
What about the DOW and S&P? Don't they matter?

Hope I am not too long winded. Thanks, milliontimes.

[millionairemind]

Cherry,

1. NYSE index, DOW Industrial and S&P500 are just market indices that tell you the overall health about the mkt. Nasdaq is the Nasdaq Composite. These 4 indices are widely watched by traders to give the overall health of the mkt. Here is where you can see the information..

http://stockcharts.com/

Click on Market Summary on the left hand column.

2. Regarding follow thro' day, check out Page 1 of this current thread that you are on. The leading index will typically pull the other 3 along... The only time I have seen a major divergence was during the Q12000, when S&P500 and DOW was in correction but Nasdaq still powered ahead till it crashed on March 14 2000.

Nasdaq has been the leading index for the last few years...

I hope this helps.

Regards,
mm

[blid2def]

MM - your stockcharts link tak jalan...

Cherry, more info on the various popular indexes:

Investopedia - Market Indexes: http://www.investopedia.com/university/indexes/

NYSE Composite: http://en.wikipedia.org/wiki/NYSE_Composite
Dow Jones Industrial Average: http://en.wikipedia.org/wiki/Dow_Jones_ ... al_Average
S&P 500: http://en.wikipedia.org/wiki/S%26P500
NASDAQ Composite: http://en.wikipedia.org/wiki/Nasdaq_Composite
NASDAQ 100: http://en.wikipedia.org/wiki/Nasdaq_100

[millionairemind]

GR,

Kam sia on the heads up... I modified the post to just go to Stockcharts.com.

Cheers buddy.

MM

[kennynah]

hello everyone...

last night was quite a roller coaster ride. for most parts of morning until 1200am (singapore time), all major indexes were on the +ve side. In fact, there was a marked show of strength. Perhaps deriving it from a better than expected ISM figure, Better Productivity % and a dropping Oil.

But since we have been trending downwards aggressively, very recently, the bulls relented (but only a little), as the sellers came onboard from lunch time.

Finally, the last 30 mins of action, seems to suggest "buying" interests as all indexes closed fractionally higher

The charts below are as such....

The top 2 are SP500 (Left = Daily, Right = 30 mins >> green dotted line shows the start of 4Jun trades)
The bottom 2 are Nazdaqs'

Good luck fellas....

PS : DOW formed a Doji (be careful...here....very careful about assuming the Bear will continue to pounce hard)



((645pm singapore time --- edited to add below, after i realize my ang kong drawing, is not so self-explanatory))

i am considerably concern over last night's intraday index movements... particularly Nazdaq. also, DOW has formed a rickshaw doji...signifying that the bears have lost steam after 2 days (monday and tues) of selling... this is also evident on SP500. however, sp500 remains under MA50 water. But it has shown a "hammer"....not a good signal for micro-bears.

in addition, 10am GMT european(germany) data again shows weakness. viewtopic.php?f=11&t=5&p=4673#p4673

normally, this would not be too much of a concern, except this time, it clearly impacts the eur.usd...causing USD to strength quite cosniderably. this can lift overall sentiments for US equities, via a possible further pressure on Oil to drop later on. US Energy Agency will release Natural Gas inventory at 1035pm(sgp time) on Thurs and if there is a buildup.... this may be a upward shaker for markets...
note, we are dealing with possibilities here...

the only consolation on last night's intraday price movement is this ....

indexes first moved up (for 3 hours) then lost strength and collapsed for the remaining of the day...except last 30 mins when there was a push upward... this could either be shorts taking profits or a genuine believe that a microterm u-turn is in the offing.. either way, mkt seems to say "enuf selling for now"
(hence, i posted the 30mins chart, to show the index movements)

but as usual, i end with my cliche ... "who knows for sure"

[helios]

ah ken,

your charts r v clear, v colourfully-huat w v bold markings

i suppose: u r e news presentor standing in front of e index TV-box screens, drawing e arrows and tell us your scripts ...

[kggoh]

The attempt rally from Nasdaq is still intact till it breaks 2450... I am just sitting on the side trying to either go long if the rally attempt succeeds or add more shorts if it breaks 2450..

Hi MM,
Are you buying put warrant to short the market? Or are there other means?

Thanks.

[kennynah]

san mei mei : aiya...my england no good mah....so draw ang kong ...

a side note about Naz...it does appear to be holding its grounds pretty well....but to borrow GR's phrase....

stand strong, doesnt mean last long

[kennynah]

The attempt rally from Nasdaq is still intact till it breaks 2450... I am just sitting on the side trying to either go long if the rally attempt succeeds or add more shorts if it breaks 2450..

Hi MM,
Are you buying put warrant to short the market? Or are there other means?

Thanks.

hi kggoh,

noted you directed your question to MM....

but i wanted to welcome you firsthand to Huatopedia...where everyday is a HUat HUat Day...wishing you the very best !!!

[millionairemind]

The attempt rally from Nasdaq is still intact till it breaks 2450... I am just sitting on the side trying to either go long if the rally attempt succeeds or add more shorts if it breaks 2450..

Hi MM,
Are you buying put warrant to short the market? Or are there other means?

Thanks.

Hello kggoh,

Another welcome from me to Huatopedia!!! Kenny is the DA GE... I am the side kick

4 ways you can play the short side.

1. PUT Warrants - both HSI and SGX.. do be careful about the market makers disclination to adjust the prices accordingly.

2. Short Index futures - 2 main indices in Asia corresponds directly with the US but with 1.5X the volatility.. HSI and MSCI Singapore futures

3. Index Stocks - so far the most sensitive one I have seen is SGX

4. Stocks that have doubled or gone up at least 50% from March 24 till May 22... quite a number.. take your pick.. but I don't like to name them cos' it might offend ppe. who are still in long positions.

As I mentioned, if Nasdaq does have the power to blast out and follow thro', all I have said above is useless cos' I will be starting my LONGS..

This is not a sell/buy recommendation.. just a note from a friend who is a trend follower.

Cheers,
mm