Just time for a quick posting to highlight a few little warning flags that you might not notice if all you looked at was the fact that we closed up again today on increased volume. What’s different is that we closed well off the intraday highs, below the open, and close to the lows of the day on above average volume (see circled candle on the price chart). Also, looking at the oscillator at the bottom of the chart, you can see the fast stochastic line crossed below the slow like from an overbought area (see circled area). One other point of interest not shown on the chart is the fact that the volatility indexes, notably the VIX, marked their lowest levels in a long time on Friday, a sign of complacency. None of this means the rally is over, only that we’ve got a couple of warning flags and some resistance at today’s high. We’ll see how it goes. Cheers!
Day: October 5, 2004
Was It All Just a Dream
It may take until the next multi-year, multi-point rise in interest rates or the next recession, but sooner or later all those 0% down, interest-only, 40-year adjustable-rate mortgages are going to come home to roost and it’s going to be a rude awakening for all those dreamers who think real estate prices can only go up. What will become abundantly clear in hindsight is the fact that…
chrisco.wordpress.com 