First of all, I want to apologize for the interruption for this blog due to the server problem with the webhosting company for the entire past one and a half weeks. This problem had affected my updates severely. I hope it is getting better now but I am already taking steps to change the service provider.

Yesterday, I made an update to my forum (http://celestialoptions.com/forum) on the Dow performance. As it is, the Dow made a feeble attempt to rebound. Chartwise, it is still in the bearish mode. This minor rebound is actually welcomed for a more sustainable bearish trend, that is. At this time, my target is still the 12300 support line. However, the ultimate support lies in 11800 level. Between now and then, there will be tug-of-war between the bulls and the bears.

There may be few trading windows of entry. But if you are to trade anything now, I suggest that you take a longer term approach. That is, buy the stocks/futures and keep for possibly a month. For options, I suggest LEAPS (long-term options) spread to stay in the market for the same period of time.

Remember, I trade the market based on my own trading systems: Trend and Breakout Trading System (TaB). In this plan, I won’t say anything not in congruence with signals I have found. When the market is bearish, I will say bearish, regardless of what others might say out there. I change my view when the market changes its trend and give signals consistent with the plan. This is just to ensure you know what I base on to hold certain view. Hope you like it.

The Nasdaq made its way back above the 20-day moving average and the uptrend support line as shown in the chart below. The chart is still bullish, contrary to the Dow’s. As the chart shows, it is possible that the Nasdaq has leveled off. A sideway trend begins to evolve now. If it is true, we will have to watch the resistance line at 2050 and support line of 1850 (tentative). Let’s see what we can do on this index later.

STOCKS TO WATCH:
EBAY – support breakout

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