FAS

The FAS rallied today after yesterdays brutal sell off.  You can see below on the 60 minute chart that the time to buy was on a move upwards through the 8.47 level.

DXO out of the declining tops

I was a chicken these last couple of days and never established a position.  Now that DXO has broken out of the declining tops I'll wait for some semblance of a pullback to jump in.

Linda Raschke's Market Thoughts

The Dow, SP, Russell have had well defined downtrends on both the daily and the weekly time frames. Currently, the weekly charts are correcting an oversold condition which should lead to further upside. However, it would take an incredible amount of work to turn the daily time frames, as well as the weekly time frames from downtrends to uptrends. That is unlikely to happen in the next few months, so on these indexes at least, you are still looking at a corrective rally in terms of structure.

Watch to see what type of volume comes in over the next week. Naz has already had a clean upside breakout. So - that is my two cents worth - the market can still have upside potential from here, but much of it is coming from rotation, which never supports a sustainable long term rally.

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SKF intraday setup

Watchlist for 7/31/08

Sad Day

The Seattle Sonics are no more. The gutless City of Seattle reached a a settlement this afternoon with the thieves that bought this team from our gutless former owner, Howard Schultz. Ugh.... All we have left now is YouTube highlights of the Reign Man and the Glove.

Paul Desmond (Lowry's): "Quite a ways from a bottom"

"We think we're still quite a ways from a bottom," Desmond warns. Over the next year, he expects the Dow to fall 30% to 50% from its October '07 top. The market could enjoy a few short-lived rallies during that span, like the one we experienced from March through May. But each rally is apt to result in a lower high and a lower low in the market.

 - Barron's 6/30/08

Desmond is the author of the esteemed Lowry's Report and is someone I go out of my way to listen to. 

Below I've attached a chart showing the 30% and 50% retracement levels off of that Oct '07 top.