Update after Week #1

The first week of my light stock analysis has come and gone and the only prediction that I made on this blog was that the Dow had reached a TOP on the 25th because of the DOJI that was formed. Let's see how I did.

As can be seen this graph the reasons for my thinking that the market was going lower was because there is resistance at roughly 12,800 and support at around 11,750. On the 25th as can be seen from the blue circle a doji (a cross)/ hammer (it is kind of a combination of the two candlesticks). When a doji or a hammer is formed during an uptrend it generally signals the top. Also as can be seen from the RSI on the top of the chart it began declining from about 60 (which is almost over-bought). Also the MACD began declining and the Fast stochastics cross which are all negative signs. All in all about 2% of a decline since the 25th.

I had also mentioned to my friend that AMD looked like a good short on Wednesday but didn't have enough time to really look into it. So lets look at what happened here is the chart:

As can be seen from this graph there is support for AMD at around 6.00 but a descending triangle had been forming since the end of February. Also all of the other indicators were all showing negative divergencies. It is because of this that I felt that on the 25th that AMD was in for another fall and they went from around 6.25 to 6.00 in the past several days which is about 4% of a loss.

I'll get out next week's analysis over the weekend.