LunaticTrader

Investing with the Moon

Outlook March 7

Posted by Danny on March 7, 2011

Market action was pretty much as expected last week.
Market is trying to recover and close to making a double top.

With a couple more days of lunar Green Period to go the Nasdaq could add another 20 points or so, but I would use it as an opportunity to sell.
A weak Green Period is all but certain now, so this signals that the path of least resistance has probably turned down for the moment. We haven’t had a negative Green Period since early August last year, and typically negative Green Periods are followed by more weakness in the next weeks or months.

Here is a current chart of the Nasdaq, with some trendlines and support levels I consider important (click for larger image):

Nasdaq March 2011

A drop below 2750 this week would confirm an ongoing correction. First target 2600, then 2450.
Just staying out, and I will watch if there is any buying opportunity by the end of next lunar Red Period.

Good Luck, Danny

2 Responses to “Outlook March 7”

  1. vinod said

    Danny,

    i am sure you must be monitoring the markets and every week after week i read your posts and i admire you for your approach and insight about the markets. Every body was feeling Nasdaq can’t go down it was only you said i would stay on the sideline rather than losing the dough.
    thanks a bunch.
    vinod

  2. Benjamin said

    Danny

    Thank you for your comments and insights.

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