LunaticTrader

Investing with the Moon

Outlook February 7

Posted by Danny on February 7, 2011

The Green Period produced an 80 point gain on the Nasdaq. Not bad.

Now our lunar phases go into Red Period again, which means the odds favor a pause or downside correction in the next couple of weeks.

Let’s take a look at the current chart for S&P500 (click for larger image):

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We seem to be in a rally that knows no end, but obviously it cannot go on like this.
The S&P has been rising at a 70% annualized rate since August. That’s not sustainable.
I am looking for downside action to start in the current Red Period.
Overhead resistance is near 1320 on the S&P, not far above current levels.
Support is around 1275, next 1225.

Some practical news: we are now on Twitter , where we will post some occasional mid-week comments.
So you can follow us there : http://twitter.com/lunatictrader1
You can also find us on Stocktwits : http://stocktwits.com/LunaticTrader

Be well,  Danny

3 Responses to “Outlook February 7”

  1. vinod said

    danny,

    as i write always your insight is Grrreeaat !!!!!
    you are right and it shows in gains we getting.
    i am not that Good at computer but as you mentioned about Twitter i like to follow you on twitter just let me know what else i have to do other than link you sent it. can i write to you on twitter like i do here.
    you also mentioned to do some more reporting on Gold if you and when you have time please do so
    by the way Happy newyear !!!
    thanks for all your help and timely suggestions.
    vinod

    • Danny said

      Hi Vinod,

      You can always see our latest tweets here in the left sidebar on the blog.
      If you sign up on twitter you can ‘follow’ us and post short comments there.
      For larger comments or questions you can ask here on the blog, where it is not limited to short 140 character message.

      I’ll see how it goes on twitter (still exploring the possibilities), and will occasionally post some charts or quick comments on other markets, gold, individual stocks.

      Danny

      • vinod said

        Danny,

        thank you i have already been watching you on twitter this morning.

        again with many many thanks,

        vinod

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