This stock should be on the buy list as it is a smart Obama play. The technical picture looks good as we made the weekly 13 at a 5 times PE now it's around 6. The daily counts are not complete though and we might test the low 10/11 once again, which would be a level to start buying. The interesting but very familiar pattern is that MDR was trading far below monthly Bollinger and just traded back up to it in a month 5. That means you need to wait for weakness but the upswing will only be temporary. After all, that is the general market development I am looking for."Buy the rumor and sell the fact" was the trade we saw in the last few days (more printing prices up) but overall markets started dropping from ideal levels for the extended zigzag pattern. We are now heading for lower levels with 2 possible scenarios but, in price terms, the SPX should see 900 and NDX 1200 in the smoother version. In order to confirm that we need a lower close by tomorrow, since today is a green 7 count. Let's see as the day closes but the NDX completed the hourly counts perfectly.
No comments:
Post a Comment