AFTER THE BELL-BULL AND BEAR DOJI PATTERN SET-UPS JAN 12TH

DOJI:
The appearance of a Bearish/Bullish (Doji) Star Pattern in an uptrend/downtrend shows that buyers/sellers are now losing control and the market is moving to a deadlock between buyers and sellers. This deadlock or balance between buyers and sellers may result because of a diminution in the buying force or an increase in the selling force. The star tells us that the strength of uptrend/downtrend is now dissipating and the market is increasingly vulnerable to a setback/advance.

Conclusion: These patterns require follow thru confirmation. Note however, Transports, large caps, mid-caps are all backed up by low RSI<2> readings.

As noted in yesterdays Semiconductor post, I believe Intel earnings report will bring in a short term top of some sort. Either an exuberant exhaustion style high, based on good numbers, or a disappointment ceiling, based on bad numbers.

The question remains, will this be the high of the year????? Not sure yet.

Tim Kathlina

November 9th After The Bell Set Ups

Amount of shares short has plunged. This means no automatic bid/floor under stocks for now.

They say every bull market has a copper top. Here we are looking at copper etf JJC. The picture is not looking good for bulls and much work will need to be done to keep JJC and by extension the broader indexes. JJC has already moved out of its symmetric trend by pulling back beyond the 38% retrace of the 2009 low. Heavy downside distribution volume and CCI(30) indicate a confirmed downtrend. JJC has formed a symmetric triangle; odds favor a break out below and taking out the last line of defense at $40. Currently oversold on daily RSI(2) at 4.15.