Friday came with small rally. But again – volume was light. Big investors are not buying during updays . I am very cautious and I do not want to be aggressively long or short now.

I also noticed that current leaders like GOOG, AAPL or RIMM are going up in parabolic move. It is very dangerous situation. Such parabolic move up finishes usually by hard and painful decline.

Also semiconductors are weak and this is another warning sign. They usually lead Nasdaq. Now they are laggards. SMH (Semiconductors ETF Holdrs) paints head and shoulders stock chart pattern on weekly chart.

This entry was posted on Sunday, October 14th, 2007 at 10:53 pm and is filed under ETF analysis, General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.