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March 25th, 2003 |
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The overall market moved sharply lower yesterday. The market is currently in a very volatile period that is being fueled by the constant stream of news coming from Iraqi war. Until this period of volatility subsides or the current phase of the war ends, entering new trades curtails a higher than normal amount of risk. I believe that new trades should be entered at the start of a trend. If you miss the opportunity to enter a trade at the start of a trend, then the wise thing to do is to sit the current movement out and wait for a new one to occur. Additionally once a trade is entered and a position is created, then it is very wise to place a stop to protect your position from moving against you, and once your position moves towards increasing profitability move your "stop" up to protect your profits. I will discuss this more in upcoming editions of the Sterling Weekly. In the meantime I am going to give the market the needed time to clarify the current trend or the start of a new one. The Dow
Jones Industrial Average:
The Dow Jones Industrial Average closed Monday at 8,214.68 down 307.29 points. Today's Opinion: Closed @ 8,214.68 Current Expectations: Our indicators are pointing lower on the Dow Jones Industrial Average. If the Dow closes lower today, then a sell signal will be generated indicating the start of a new downward trend. |
The S&P 500: The S&P 500 closed Monday at 864.23 down 31.67points. Today's Opinion: Closed @ 864.23 Current Expections: Our indicators are both pointing lower. If the S&P 500 (SPX) closes down again today then a Sell Signal will be generated on the S&P 500 index indicating the start of a new downward trend. The
NASDAQ 100 (NDX)
Comments (3-25- 03): The NASDAQ 100 Index closed Monday @ 1,0047.10 down 46.02 points. Current Opinion: Closed @ 1,047.10 Current Expectations: Both of our indicators are pointing lower on the Nasdaq 100 Index. The recent market rally had pushed the NDX into an over extended position, so a pullback is not unexpected. While the trend of the index is still higher, if the NDX closes today lower, then there is a strong chance a sell signal will be generated indicating a move lower. If you would like to be permanently
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