NAVIGATION:

"The Sunny Side of the Street"

TUESDAY NIGHT--12/17/2002:

Figure 1 - Daily INDU The Dow today half way negated yesterday's up move. It also took us right down to an important support area at 8521.  Because of the 50% retracement and the fact that it is a significant Attractor I think ...

symbol  close upper Attractor lower Attractor INDU 8535.39 9075 8450 QQQ 25.88 33.23 20.60 SPh03 902.50 963 875

On the daily chart of the Dow, prices are still being held down by the Attractor at 8645, which seems to be pretty strong.  To get over it will probably require a gap opening that just jumps over it.  Average True Range on the daily chart keeps getting lower and lower and hasn't been this low since May.  Notice in Figure 1 that the trendline on RSI which I drew several days ago once again held, with the RSI reflecting downward off of it.  That's a negative sign.  But, on the positive side of the equation, RSI held above it's trendline that started forming in August (enlarge Figure 1), and around which I have drawn a box.  With ATR this low, we might just get a bounce upward on the Dow.

Figure 2

I haven't mentioned the overlapping cycles in a few weeks.  In Figure 2 you can see that we are coming up on an overlap that will exert downward pressure on the Dow with both the short-term and the longer-term cycle.  That's what we will be fighting until the end of the year.  I expect we will continue the bearish waltz on down, rather that any selling frenzy as most of the public with whom I speak are still believing that the market will "come back" and think this is a good place to do some "bargain hunting."

BRING A FRIEND AND GET 1 MONTH FOR FREE.  For each person you refer to The Sunny Side of the Street (and who subscribes) I will give you a free month on your personal subscription.  This is a word of mouth business, and I need your help to spread the word.  If you tell a friend, just email me his name/email address, and if he/she subscribes you will get the credit, and a warm welcome thanks from me.

Figure 3

On the daily chart of the QQQs, in Figure 3, you can see that RSI seems to be holding above the 40 area (a nice positive), but that price movement was once again foiled by 26.20 (or 26.16 to be more precise.)  We closed today just under that mark, at 25.93, having spent most of the day circling around 26.20.  We haven't yet touched the lower Sunny_Bands, and are still holding beneath the Sunny_DMA, which is now moving just about as flat as it can get.  A quick view of the weekly chart of the QQQs makes a good case for a move up to test the trendline that would put us at about 29.  And, I do believe that's what is about to happen.

Traders, I was with a private consulting client all day, so I jumped in and out of the market on 4 occasions, much too fast to be sending any emails that you could profit from.  I was taking $200 and $300 profits out, holding trades for only a few minutes.  Tomorrow I'll be back in my Herman Miller swivel chair (my kids call it my wheel chair), ready and set to call out trades and snares as I see them.

My intraday model is long since yesterday, so there really wasn't much to say today.  Tomorrow we'll be doing toe dancing all day, probably moving first down and then up--so we will have to be fast on our feet.

Investors, we have just recently crossed over the 20-week moving average and are now sitting right on top of it.  We still have to make a run for the 50-week moving average, which is currently placed at 9142.  Of course, its value will change as prices on the Dow change and thus alter the computation.  If you look at it a little differently, price is sitting right on the Sunny_DMA and holding above a trendline emanating from September 1998.  In fact, the trendline is the Head-and-Shoulders neckline and this placement is very important for what lies in the months ahead.  If we stay above this line we just might have a very nicely positive 2003.  RSI on the weekly chart is still down in bullish territory and I would like to see it push up into the 65 zone before going long the weekly chart.  

On the intermediate term charts (daily) the models are all long and have been for several weeks.  We took profits when price dropped below 8645 on the Dow, and will not re-enter the long position until price exceeds that value again.  So, I'm just sitting on the sidelines in the Intermediate position.

As always, be cautious, be nimble, and good luck!

I'LL MAKE YOU ANOTHER OFFER.  Send a friend my way for one of the upcoming seminars, and I'll give you $250 cash.  Take your loved on to a nice dinner out on me.

   Don't miss it--Sunny only gives a few trading seminars each year.  She calls them "Solving the Puzzle" because she puts all the pieces together into one cohesive plan for you to become a better trader.  Make it your business!  View the syllabus--she only takes 15 students. January 17-19, 2003.  AND..to match Larry Williams' offer, on Friday we will be trading real-time, with real money.  I will split the winnings with the class, and if there are losses I'll keep them for myself.  Just think...the seminar could be free!

Weekly Stock Picks for the week beginning 12/15/2002:

(Last week's picks made a profit of $0.  Click Here to view the picks for last week, in the Archives.)

12/17/2002 -- We are getting really close to some of the breakout lines, so keep watching.  NSOL did break the line today, so the model is now long NSOL.  

  AND... if you are a TradeStation user, you need to attend "TradeStation Made Easy" February 7-9, 2003.  Sunny knows TradeStation and EasyLanguage as only another Trader could, and the class is more engaging and jam packed with useful information than any other class you can find, at any price.  Enroll Now--she only takes 15 students.  And, the same real-time trading offer applies.

CHART OVERVIEW:  for the real scoop, visit Yahoo Finance

1 Day	5 Days	1 Year

DISCLAIMERS: