The NASDAQ Composite is beginning to show behavior very similar to that just before the last vote to raise the debt ceiling and the subsequent downgrade by Standard and Poors. Notice how there was a double top before the drift down began which ended with a 550 point (19%) loss. The chart looks quite similar as we approach the Super Committee deadline of November 23. There is more choppiness than last time because of the volatility surrounding the European saga, but a similar trend is evident. With only three business days to go before the committee must report to Congress, the signs are that a compromise is not reachable. Of course, these things nearly always get resolved at 1 minute to midnight so a positive outcome is still possible, but if a compromise is not achieved, the 2300 support level could get tested.


The trend signal for the NASDAQ and Russell 2000 continues to be positive although that could change with another losing day. Despite the losses for the indexes for the week, there were some nice gains to be had for the nimble. CFX (Colfax) had an intraday gain of 13.7% from a cup-with-handle base and DLB (Dolby Labs) jumped 15.6% from a Head and Shoulders bottom.

No new features this week.

A common question from new subscribers is how can they limit the number and type of alerts they receive, so here is a summary of the various options.

The type of alerts you will receive are controlled from the Alert Preferences menu under Take Action - Alerts!. Here you can choose to receive Long position alerts, short position alerts, both or neither.

If you choose to receive alerts for long positions, then you can further refine your selection to restrict alerts by watchlist filters and/or your personal watchlist(s).