A week ago chart patterns suggested that investors should put very tight stops on Silver due to key resistance (see post here) and to pick up the NDX 100 due to upside breakout of key resistance (see post here) The patterns were helpful last week as can be seen in the chart below as Silver declined over 7% on the week and the NDX 100 was a relative performance leader, when comparing it to the 500 and the Russell 2000.
Source;FINVIZ.com
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Game Plan…Continue to own the NDX 100 and XSD with 4% trailing stops. Looking for relative strength in these two positions, due to upside breakouts in each.
Andrew…interesting news and Thanks for sharing. Aside from this info, the NDX, being 5% above the line has broken resistance.
Today Verizon may announce that they will carry the Apple Iphone. Seeing how NDX and APPL are so highly correlated, I would be worried about a buy the rumor, sell the news scenario here. Thus waiting to add to this NDX breakout.