Wednesday, April 21, 2010

Be careful out there

Just another day at the markets. The earnings reports have been pretty good so far, but still the markets seem to be having a hard time making new highs. That makes me kind of cautious here, considering the run up we have had recently. I am going to be cautious with starting new positions until the markets make new highs.

The volume seems to be picking up on the S&P. The support and the resistance levels are marked on the chart below. A negative MACD divergence seems to be developing but that hasn't stopped the markets so far. Basically, when the markets don't react to good news the way you expect them to, its time to be cautious. And it looks like that's where we are at right now.


Personally speaking, I got out of my OCLR position, that I had entered yesterday, at 2.78 for around 2% gain. I still own SWC from Monday but patience is beginning to run thin on this one.

Take care and good luck tomorrow!

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