A new uptrend line is formed in the NASDAQ daily chart

A new uptrend line is formed in the NASDAQ daily chart


That's the conclusion for this week's market review.












It is also notable that the down trend line in the second chart seems broken out successfully.

I think it may be the time for bull's second leg running up now, or very soon.

Today (June 19, 2009)'s volume is very impressive, especially with a unfilled gap, very bullish. Good sign for the bulls. This Gap is critical for the bulls, I am hoping it can hold unfilled for some time.

In the morning of last Friday (June 19,2009) just after the market opening, we questioned if the bulls are back? So far, the market's bullish mood is pretty promising.

Last Thursday, I have commented the following:"The level 3 support of bulls is holding well during the day !

More important, the down trend line is broken out ! "

last Wednesday, I have the following comments: " A bouncing back from the important support levels as shown in the chart is very expect able."

So far, the chart reading works very well.

Hope you enjoyed the predictions, or even benefited from the comments !

Very very good day for the bulls

If the bulls can hold today's gap up in the NASDAQ daily chart well, then another leg up is very very possible !!
European stock market closed high today. Euro is still around 1.40.

Enjoy the weekend and have fun !

Some news with regard to CLFD

Mid-State Consultants, has selected Clearfield, Inc. (NASDAQ: CLFD) as its sole fiber management supplier in the brownfield fiber to the home (FTTH) initiative in southern Michigan.

Yesterday the news is out, but CLFD down 2.76 with very little volume.

In my opinion, this news tells us that the company, Clearfield, Inc., is doing pretty well so far. I expect it can keep profitable in this year 2009, and may be profitable in 2010 as well.

CLFD has been in our 10 baggers' list for some time when it is around ~1.10. To date, it is up almost 50%.

IF the underlying business continue to do well, I think CLFD could be a 10 bagger, very possible, in about 1-2 years.

Bulls are back, very seriously ?

Bulls are back, very seriously ?

All other global stock markets are up ! China's Shang Hai index is heading to 3000.

Last night, I pointed out that "Mr. Market usually fools and surprises the traders with a huge jump when you think it is weak. So be careful!". I sincerely hope you are not heavily shorting the market.

Please keep close watch at the life lines of both bulls and bears. The chart is posted last night.

PPCO made a new high 3.26 this morning. I spotted it when it is traded below 2.02. UP ~60% in a short time,namely, less than a Month.

I don't expect today, the market will have some intra-day reversals. The trend is pretty clear today.

Life lines for both bulls and bears

Life lines for both bulls and bears

The market is at a critical point for both bears and bulls now.

The chart said some good news for bulls as well as some good news for bears. Therefore, betting heavily on either side at this time may not be good. Keep at least half cash aside is the key for this game.

Here are some bottom lines now:

• The bull's life line as shown in the chart must hold well, otherwise, being a bear is smart !
• The bear's life line as shown in the chart must keep the bulls under it, otherwise, being a bull is clever.

Based on this week's market movement, the bulls seemed very tired. However, Mr. Market usually fools and surprises the traders with a huge jump when you think it is weak. So be careful!

Great day today

Great day today ! Isn't it ?

The level 3 support of bulls is holding well during the day !

More important, the down trend line is broken out !

Today's market movement also proved that yesterday is a pivot day .

More analysis and the chart will be provided later.

NGD - another breakout play ?

NGD - another breakout play ?



The chart said the breakout may be real, and should run to the calculated target.

Today the low is 2.74 so far.

The price at the time I posted it here is about 2.78.

Is it the time for NGD ?

Let's watch and learn !

An intra-day reversal is expectable

An intra-day reversal is expectable, and very possible today.

I expect today is a day for bulls again. Like yesterday !

Is it bull's time ? Crossing my fingers !

Critical time for the bulls ?

Critical time for the bulls ?

That's what the chart told us after the market close today.


Why ? Because the level 3 support for the bulls are in danger now.

We have posted this 3 levels support of bulls as soon as they are formed.

Please also notice that the down trend line has kept the bulls under the line for 5 days to date. We drew this line over the weekend. This line is very important for the bears. Unless this line is broken out by the bulls, it is safe to hold the short positions. That's why I am keep watching this line because it tells us what time and where the market correction is over !

We have mentioned the market correction's target before. Look at the chart we drew on June 10, 2009. We clearly mentioned the correction target is the level 3 support of the Bulls. So I think the correction may be over very soon.

The key is to watch if the level 3 support of the bulls can hold well and the down trend line can be broken out successfully !!

A nice run up again today, up more than 10%

A nice run up again today, up more than 10% so far.

PPCO made a new high 3.15 today. The initial post of PPCO is here, at about 2.02.

A nice bouncing back, as predicted from the chart

A nice bouncing back, as predicted from the chart


The third level of support for bulls is holding the bulls well, so far.

A key question to ask now is: will the down trend line be broken out successfully ?

If so, then the correction wave may end today, just a possibility, then bulls resume the up trend and market goes higher high ? !

Crossing my fingers.

Today may be a day for bulls

Today may be a day for bulls !

A bouncing back from the important support levels as shown in the chart is very expect able. More uncertainties are acknowledged for today's market movement.

PPCO made a new high 2.97 today. The initial post of PPCO is here, at about 2.02.

A rainy day - my personal story today

A rainy day - my personal story today !

Today, after a day's busy work and trading, when I looked out the window, I noticed it is a raining outside. Unfortunately, I forgot to bring my umbrella with me.

So, guess what? I was wet when I walked from my office to the parking lot.

This experience reminded myself, and you as well, don't get wet during a rainy day in the financial market ! Especially when the market movement is against you !

So never forget to bring the "umbrella" with you when you make trading decisions.



We have warned and being very careful recently, to name a few, see below:

• First warning, last Monday, the first level of Bull's support is broken.
• Second warning, last Monday, predicted QID will hit 34 soon.
• Over the weekend, more important, we pointed out the down trend is formed last Friday.
• Yesterday, our market close remarks said: "The market correction may continue until the marked line in the picture is broken out." Which is remarkable because today the market just bounced back from the black line we drew two days ago. See the chart for a better understanding.

Actually, we have clearly said below words last Friday:" Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. More confirmations will be developed and posted here. "

So far, 1879.92 has become a top/high for at least a week. No magic formula. The charts told us all the story.

Now, the market comes to a critical position. Bull's second level is broken today. And the third level may be broken as soon as tomorrow.

If the Bulls can not get back to these two support levels, especially the third level. More pulling backs are very expect able.

The magic green line has successfully kept the bulls under for 7 days so far ! What a magic line we have drawn !

Things could become ugly, so be prepared!

Some Updates

• Tomorrow's Gap prediction
  
• Recent gap ups

A beautiful and wonderful day ! Enjoy the good time !

QID hits 33.83 high today and closed at 33.82. Isn't it wonderful !

PPCO up 5.56% after hitting a new high 2.94, with nice volume. I discovered it when it is ~2.02.

CLFD continues the up trend with very few volume. UP more than 50% to date since I discovered it.

Wonderful time ! Actually, beautiful DAY !!!!

Both my longs and shorts are climbing up together again!

More analysis will be posted later tonight !!!!

QID-A beautiful Chart set up

QID - A beautiful Chart set up

Look at the 5 days chart of QID. It is a beautiful chart set-up. Once breakout, it could run to 35, very easily. Previous, I have predicted QID will run to 34, now I increase my target to 35, at least. I still hold my QID, bought at 31.



This morning, I mentioned the European stock market's intra-day reversal. Here is the quotes
"Most Asian stock markets are down. But European markets are UP. However, finally, the European stock markets plunge hardly and show a intra-day reversal. Will the US stock market repeat the same pattern today? Let's watch and learn."

So far, US stock market has followed the European stock market and plunged as well. Will it continue to the end of the day ? Very possible, but not guaranteed here !

In yesterday's market close comments, I drew the below conclusion: " The market correction may continue until the marked line in the picture is broken out." So far the down trend line, I drew here about two days ago, still holds well. More reviews will be posted later tonight after the market close.

Last Friday, we have warned the below message: "Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. " So far, it works pretty well.

Hope you all will enjoy the market's up and down. But don't get hurt or confused !

Today is not like yesterday

Today is not like yesterday.

Yesterday is a well trended down day. Today, more fluctuations are expected.

Euro formed a double top heads and then bouncing back to test it again. If the double top patterns hold well. I expect Euro can drop to 1.37 again.

Oil is above 72, and Gold is above 935.

Most Asian stock markets are down. But European markets are UP. However, finally, the European stock markets plunge hardly and show a intra-day reversal. Will the US stock market repeat the same pattern today? Let's watch and learn.

PPCO makes a new high today, 2.94, so far. Our initial call is at ~2.02. The chart is here.

Today, the key watching point is the down trend line, drew yesterday and the day before yesterday. Once it is broken out, the end of the market correction may be signaled.

Finally, we have predicted today's gap up correctly. Hope it can help you a lot.

Today's market close

Today's market close prediction is posted earlier(8:40AM EST) since I have something to do at about 9:00.

Enjoy a good time !

The market correction may continue

The market correction may continue until the marked line in the picture is broken out.



We have drawn this line over the weekend. We also pointed out a new down trend is formed last Friday on the NASDAQ daily chart.

Last week, we warned that :" Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. More confirmations will be developed and posted here." I hope you all have paid attention to this info.

The past corrections have proved to be a good buy in dip opportunity since March this year. Will this time be the same ? Will the NASDAQ be able to make a new higher high again after the market correction ?

What I can say is don't gamble now! Wait for a more clear signal ! One thing is for sure, unless the NASDAQ can breakout the line we drew here, no hope for a home run yet!

PPCO up ~10% today in a bloody day. The initial call of it is ~2.02. Today the high of it is 2.87.

Oil is down to 70 now. And gold is down to 928. Dollars are becoming stronger as well, at least at the moment.

So sweet

So sweet !!!!!!!!!!!!

PPCO up more than 15% in a bloody down day !!!

here is my previous call!! The latest call is here.

What a nice day and nice time !!!!

I hope you all benefited from the reading of the blog!!!

What a nice gap down today !

What a nice gap down today !

It is really nice ! Last Friday we have predicted this gap down, I hope you have seen this prediction and made some profits from the prediction. Recently, all the predictions in the blog have worked very well. To name a few here:

• Tomorrow's gap down/up predictions
• Today's market close predictions
• Recent pick of CLFD, up ~50% so far with low volume, very nice. Even this morning, it is up !!

The Euro has dropped to ~1.38. We forecasted Euro down to 1.37 last week.

Oil is about 71, and Gold is about 937.

Below is quoted from last week's post :" Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. More confirmations will be developed and posted here." I hope you all have paid attention to this info.

Over the weekend, we continued our view on the market correction. We also pointed out when and where is the end of the market correction. I hope you all have gained from the reading, not just reading.

What a great day ! QID will head to 34 very soon.

A new down trend is formed last Friday

A new down trend is formed last Friday on the NASDAQ daily chart. See the chart below.

If the black line can not be broken out tomorrow (Monday), I think the NASDAQ will correct down to the red line, very possible and expect able.

As mentioned before, the NASDAQ is farther away from the magic green line now. It is already 5 days below it. Amazing ! This green line has been drawn for over a week now. It really helps me to understand the stock market behavior. Especially, it helps me to figure out when and where is the market top, as mentioned before. I won't repeat it here again.

This week will be more fun ! Will it break up or break down ? You name it !

A list of recent gap ups can be found here.