Late Friday Afternoon comment
New Long position, OMCL
Alert #1316 December 1, 2006
Late Friday Afternoon update:
With the big move lower, all of the 3-day trends remain
pointed down and the NDX turned its 3-day trend down on Friday.
Probably more important is the Dow fell below 12,140. That
suggests the Dow is going to test the 12,070-080 level next
week. Note that the NASD and NDX are already near their Tuesday
lows. While is somewhat interesting though is the relative
strength of the S&P 500, which remains well above 1387, which
is its key level in line with 12,080 on the Dow. The NYSE is
also holding up a lot better than the NASD, NDX, and Dow
holding well above 8850.
The action on Friday is in line with our expectations for
prices to slide lower in the final C segment of a larger A B C
consolidation that began over a week and a half ago.
If you held the SPX Position short, then look to book the gain
either now, or early next week.
Looking ahead, I expect we will see a bit of late day
recovery, but the die has been case. We should see prices work
lower early next week. The key is that seeing reduced downside
momentum as prices work lower. If it plays out that way then we
should see some sort of important low from which prices can
rally into the end of the year.
Let's add OMCL as a new Long. OMCL is a strong stock that has
been consolidating since late October. Its LIB indicator is up
to a high level and the stock tends to jump after that happens.
OMCL Rec Long @ 18.82 on 12/01, stop 17.25, Target
>20.50.
Because I am selling Christmas Trees at my daughter's school
this afternoon, the weekend report will go out Sunday Morning.
Have a great weekend
Jim Patterson.
Today's Alerts:
Late Friday Afternoon comment
New Long position, OMCL
(Alert #1316: December 1, 2006)
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