| Technical Analysis NASDAQ $TRAN $IIX $USD Pseudorandom |
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| Tuesday, April 4, 2006 |
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Nightly Update - COMPQ, IIX, TRAN, & USD
The Nasdaq Composite (COMPQ)- Daily Chart
The daily chart of COMPQ illustrates that it has broken out of an ascending triangle pattern. The COMPQ is now pulling back on low volume to form a bull flag. Indicators and oscillators are bullish and trending. Today's volume is much better than yesterday. Indices will move first, and stocks will lag and then follow. We just need more time for our stocks.
The Internet Index (IIX)- Daily chart
As you can see by looking at the daily chart of the IIX, it is forming an ascending triangle. It has completed a wave 3 to 4 pullback, and has reversed upwards to take out previous resistance at 190.46. It is now in a wave iii move upwards, which is the fastest wave. The IIX is in a bullish trend reversal; indicators and oscillators are still bullish. The index is front running the stocks. This chart is like the entire market and nearly every sector and sub-sector is on the verge of breaking out, but hasn't yet. Break out is forthcoming.
Dow Jones Transportation Average (TRAN) - Daily Chart
The TRAN is currently parabolic and is at all time highs, it is at 4681.81 The larger pattern is currently in a broadening triangle pattern. This time the TRAN chart pattern has broken out of the RST to the upside. The TRAN chart may look toppy, however it keeps going higher, because there is no resistance above. (Remember the DAX looked just the TRAN does now this last year and it has rallied 100 points) Indicators and oscillators have been in a full blown bullish trend reversal since the lows in October 2005.
The US Dollar (USD) Weekly Chart
The weekly chart of the USD illustrates that it is in the process of forming an inverted head and shoulders pattern. The right shoulder has not been put in yet. The dollar has broken the up trend line bellow $89.00, and is in the process of putting wave c to the downside. Wave C will probably be around $85.00- $83.00. Indicators and oscillators are bearish. The dollar looks ugly.
CSX Update (Did an update on this one stock, and just wanted to go back and review). In order to uncover "Pseudorandom" you have to know where the sequence began (the starting point). We want to keep it simple, we don't want to over analyze, but that can't be done until you stop the noise and identify the odds of probability. The only way to do that is by increasing the reaction time you have to the sudden change in price that others didn't anticipate. But as long as you know the difference between "right and wrong" you will be on the winning side more often than not. Manage winners and stop chasing losers. (Do not compound and know when you have been licked, and then get over yourself!!).........Link to an old update that I had to google myself on, because I couldn't remember when I did it voice update will go over why I bring this up.
Current Chart and Before Update
NASDAQ
$IIX
$TRAN--CURRENT
$TRAN--600 POINTS AGO
$USD--CURRENT
$USD--LAST YEAR
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