Diamonds, Spiders, Crude and Neflix

By: Prudent Speculation Wednesday, June 25, 2008 2:14 AM

Sectors: Finance , Index

Symbols: DOW, NFLX

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The Diamonds, ticker DIA (chart above), which is the tracking stock of the Dow show a bear flag I had previously mentioned as worth watching. Well, it has broken to the downside convincingly. I would think $110 would be a very reasonable target to watch for on this.

The Spiders ticker SPY (chart above) show a picture that is slowly but surely deteriorating. The bulls had better hope and pray that all we do is test the Jan/Mar lows. Unfortunately I fear worse lies in store for this index.

Crude continues onward and upward. Please tune out the bubble heads on television as they would not let something as simple as the facts of supply and demand get in the way of a good show of demagoguery.

Housekeeping notes;

I was filled on a 2nd unit short of Netflix yesterday at $29.70 as NFLX has now broken the lower boundary of that flag and am now short 2 units. I would counsel the Neflix longs to be very careful with this one as the break of this pattern bodes much pain.

More Articles by: Prudent Speculation
More Articles on: Finance , Index
Research Related Stocks: DOW, NFLX,

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