Dow Hits 10,980

2-Year Lows. Ouch

By Bryan Bottarelli
Friday, July 11, 2008 12:44 PM EDT
Fri, 11 Jul 2008 16:44:00 GMT

Dear Bottarelli Research Member,

It’s hard to believe that the Dow traded for 14,198 on October 11th 2007.

Fast forward to today, and the Blue Chips touched a low of 10,980, good for a 29% retrenchment from high to low.

As you can see from the Dow chart below, every indicator you can follow (RSI at the top of the chart and MACD at the bottom of the chart) indicates an “oversold” reading — and yet the markets continue to march lower and lower.

INDU

After going 9 for 9 this week, there’s no sense squeezing in one final trade leading into the final hours of trading. So for the rest of the trading day, I will not place any new trades. Rather, let’s monitor how the major market averages close the day — and use this close to prepare for our trading next week. At this point, this is the most logical and prudent move that we can make. Unless a super-dramatic trade comes to my attention, we’ll most likely be done for the week. So on that note, have an enjoyable weekend, and we’ll look to continue our nice little winning streak next week. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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