Securities Research Services

Thursday, October 14, 2010

Dow Resistance & Other Worries

A nerve-wracking market just got a bit crazier.

Take a look at the Dow via DIA.  It tailed off at resistance yesterday.



Meanwhile, AAPL hit $300 and the QQQQ chart looks pretty much like DIA.

A person would have to be crazy to buy at these levels, especially with the financials failing to come along for the ride.

Nevertheless, crazy may just be what the doctor ordered.  SPY still has room to move, the Fed is friendly, the dollar, as measured by UUP is probably on a collision course for $22 and believe it or not, the weekly charts look much less fearsome than the daily charts.

We've bitten our fingernails down to a bloody pulp here but this bull train is rolling.  A weak financial sector and roaring bullish sentiment are likely going to be an issue moving forward, but here and now we may just see those betting on a double top DOW get their rear ends handed to them on a platter.

Even so, we're hedging our bets here and if DOW resistance becomes an issue we'll be quick to play the other side.

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