Comments on: Tech Talk for Tuesday February 24th 2009

By: SG3

SG3 — Thu, 26 Feb 2009 03:38:07 +0000

I’ll gladly send in $20 if four others will.

By: Don Vialoux

Don Vialoux — Wed, 25 Feb 2009 03:24:53 +0000

Hi Misterhoney. Parabolic charts are fascinating, but difficult to play. What is known is that guessing when the peak will occur is next to impossible. What also is known is that the chart will fall sharply after the peak has occurred. The sharp fall in TSX Gold Index today (9.0%)is an example. More information on gold stocks is offered in tomorrow’s Tech Talk.

By: Don Vialoux

Don Vialoux — Wed, 25 Feb 2009 03:12:14 +0000

Thanks every one for your kind comments. In markets like we have seen during the past two weeks, it really helps.

By: rol

rol — Wed, 25 Feb 2009 01:31:20 +0000

hi don, it was really nice while it lasted & i liked it…… i’m referring to the snowflakes on the home page. and wouldn’t you know it…. as soon as you signal that spring is near (by turning the snow off) the market rallies………

i never miss your posts & will now be looking forward to your springtime updates!

By: Gary

Gary — Wed, 25 Feb 2009 01:14:51 +0000

The S&P500 seems to have bounced of it’s Nov. 20 intraday low of 741 and yet all we hear about is lower lows coming. In my view, this be bullish! A smart trade right now would be to go long on XSP or SPY with a stop-loss just below the 741 level.
Any thoughts?
- Gary

By: Jim

Jim — Wed, 25 Feb 2009 00:46:54 +0000

Hi Don,

I read Tech Talk daily, and the reader reply comments during the day, or during the evening. I find the majority of the questions and comments to be well thought out and educational. Of course, that goes for your answers as well. I hope this section of your site continues add to the overall value of your site.

Specifically on the market action today, I was encouraged by the very positive response of the energy equities to the price of Oil. I think you reported that Thackery’s “day” to enter the energy sector is tomorrow, and this bodes well for the seasonal play on energy. OnWardsAndUpwards !

Thanks Don !

By: Susan C

Susan C — Tue, 24 Feb 2009 19:23:59 +0000

Just want to add my thanks. I’m no expert, and have very little time to study more than a bit in TA, but Don makes things very clear. This analysis is helping me be more patient with my few trades and gives me hope we may be near a bottom or maybe a bottoming process. Thanks, Don!!

By: Misterhoney

Misterhoney — Tue, 24 Feb 2009 16:30:45 +0000

Hi Don,
Yesterday you have written that the price of gold is going parabolic on the chart versus the Canadian dollar.
When a chart is going parabolic, it means it’s getting way too expensive and a big correction is coming.
Should we check the price of gold versus the CDN $ or vs the US $ ?

By: Ken A

Ken A — Tue, 24 Feb 2009 16:28:37 +0000

Canuck2004:

I agree – lotsa downside left, but a sizeable correction is due…
By Elliott count SPX shouldn’t breach 765 if it’s heading lower later today.
Details at : http://www.ad-ons.com/StockMarket/spx30min.jpg

SG3 – Then I suggest you send Don $100 if you want rid of the Google ads
Or just ‘look away’ from that area – I don’t even see Google ads anymore – Hmm I bet there is a Google ad blocker out there… guess I could Google it!

By: Canuck2004

Canuck2004 — Tue, 24 Feb 2009 15:51:48 +0000

Can banks and many others continuing to make new recent lows.

Make sure you have stops on all long positions, once support is broken, nobody knows how low they can go. Won’t know where the bottom is until it is well behind us.

IMO, we haven’t seen the BIG capitulation low yet…. THE big shake-out we need to clean house before we move ahead.

Don’t give anything a lot of room, set stops depending on the individual beta, 2-5-8% maximum. You can always buy it back later once the market improves. Better to get stopped now, wait for a new uptrend, than try to ride out a downtrend. Don’t be a hero.

If shorting, same problem in reverse… IF it holds here, we will get a big bounce up.