Thursday, August 14, 2008

Diamonds are forever; well, that's the motto at least

This chart is very similar to the spyders. I'd think that a pull back in volume to the ~10million level would be a sign of greater weakening (and eventual collapse). While the stochastic is in overbought range, it looks like a drop from overbought to oversold is the indication to look for. Once that happens, the intra-top has been reached and its time to vacate, setup some shorts, and wait for some more good deals. Anyway, we have some resistance points to watch for on the way up, and some support levels to watch on the way down. Good trading, and remember, I am in no way legally responsible for how you choose to trade. The stock market involves risk and I do not have enough experience to handle your finances.

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