Round and round and round...
The market had an opportunity to commit the bane of markets everywhere: open higher and close weaker, if not down, down, down. There was an attempt to plummet the market mid-day, but it regrouped and closed quite well. Was I one day too early for the incipient speed bump?
This latest attempt to rally itself might peter out, but then they all do in some time frame. The sole question is whether any rally fits your time frame. To me, every journey begins with a single step.
I find especially attractive the profoundly bulllish action in both Google/GOOG and Rackable Systems/RACK. As a market leader, Google/GOOG has led lower the market, but has since firmed up, establishing a pattern of higher lows within the greater context of a possible symmetrical triangle (see this pattern basis the weekly chart), while the market itself trades to lower lows. Rackable Systems/RACK continues to confound most investors; already I have read (elsewhere on the www) comments by purportedly savvy investors to stay away. These are the same people who told you to buy at $50+ but after earnings. Remember my write-ups: I suggested then (when the shares were in the 50s) that I sought a decline to $32-30, at which point I would begin buying. It gratifies me to witness the market still obeys chart patterns.
Each might yet fail, but read again the closing sentence of my third paragraph (above). No matter the number of times I state this, I cannot make myself understood. I do not seek the market to ratify my analysis; I take action upon the signals I identify in advance of subsequent market action. That RACK chooses to bounce from the pre-assigned support at $32-30 is no surprise; the sole item remaining is the sustainability of the low of the perceived pattern.
Alas, the ability to upload charts seemingly has been compromised.
-- David M Gordon / The Deipnosophist