Friday Trading Plan (May 29, 2009)

Greetings, yesterday's action on most stocks was quite choppy. And the breakout from the trendline was slow and lack conviction.

Lets look at JPM as a study, notice that the prices are above their moving averages as compared to previous prices in the historical data....this is bullish. But you have to be careful that this could be a fake out before any eventual breakout. Who knows the price could go back below that trendline...

I see JPM going sideways or up in the short term.


Looking at the SPY chart, I don't see how far this market can go unless there is an attempt to break above SPY 91.91.

It just makes me wonder how on earth is the market going to do that with OIH and Nasdaq getting overbought...? I suspect some other sectors have to join in the rally