Dow At 50-Day MA

Will It Find Support?

By Bryan Bottarelli
Friday, April 11, 2008 10:21 AM EDT
Fri, 11 Apr 2008 14:21:00 GMT

Dear Bottarelli Research Member,

Well, it’s fair to say that earnings season has gotten off to a brutal start.

First it was Alcoa (AA – NYSE) reporting disappointing news. Today its’ General Electric (GE – NYSE) fueling a sell-off.

With the Dow Jones Industrial Average trading over 170 points lower, this is bringing us right back down to the 50-day moving average. As you know, I’ve been expecting this move all week. And without question, it’s critical that the Blue Chips establish some showing of support at this 50-day level. It’ll probably be a battle all day long, but the final answer will to by the close of trading.

INDU

In the meantime, I’ll continue to watch the chart se-ups I noted yesterday for possible trading opportunities. I’d also like to point out surprising strength today in shares of Sunpower (SPWR – NASDAQ) and Terra Industries (TRA – NYSE), noted by the charts below:

SPWR

TRA

While the bulls and bears battle it out, it’s not time to enter any new trades. But I will be watching closely for and opportunities to enter strong stock candidates for cheap prices. As you know, I’m always skeptical of big early-session moves (both up and down) because you typically see these moves reverse course throughout the day. Therefore, should something promising trigger, you’ll be the first to know. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From April 2008