Along with the NASDAQ making a new high, the CCI 14, 6 triggered a Zero Line Reject signal today. We are also for the first time since January 4th 2008 above the daily 34 EMA, which suggests a change in trend on a daily basis. First target is $2444.9 or if you trade the QQQQ , then $47.20. My stop is under $43.32 on trading the QQQQ.

Charts are giving two entry signals called the CCI Hook from Extreme Pattern and the Vegas Entry Signal on a weekly chart, suggesting that NOW is the time to go long! Why is is called the Vegas Pattern? Because it indicates that a very strong reversals trend is setting up! It is call Hook from Extreme because the price as gone to extremes and has given a signal to enter.

I already have positions in PEY and SPY. I’d say give it until Tuesday to enter since this is a weekly set-up (There is TIME to enter!). Isn’t that a great feeling? Have time to enter? Isn’t that better than trading on a one minute chart where you have a milisecond to enter?

See the chart:

It has been a month of waiting and watching since I posted a “Touch Down” on the S&P in January. Guess what? We are still around the same levels. We haven’t really gone anywhere. Could this be the bottom? According to Mark Arbeter of S&P500, we are close to the market bottom, given that the Investor’s Intelligence ratio has never gone so low and has never seen such bearishness since 2002. Investor’s have simply capitulated. What investor did not believe that we were in a recession? Mark said that now we simply have to wait for institutional money to flow in to give confirmation to all this information.

I, myself, took a break; however, I did not sell although “all hope seemed lost!” Ahh ha! Those dividend paying ETFs kept my sanity going. Standard and Poors said that we have a month or two of solidification to go. This leaves us to really see some action at the end of April or May.

Google has fallen roughly 25% from its 52 week high in the mid $740s to the mid $550s.  This tech darling still has a remarkably high growth rate in the 50% range, and with Yahoo continually underperforming its likely that Google will be the beneficiary.

Therefore, if you are bullish on Google this buying opportunity could be the last one available for some time.

The chart indicates that GOOG is just now reaching the bottom of its long term bullish trendline, which amazingly extends as far back as its IPO in 2004.  I would estimate some form of consolidation will take place today (01/30/08) and tomorrow, with some large bets in either direction being purchased prior to the earnings release after the bell tomorrow (01/31/08).

Again, my advice is play it safe and wait for some sort of price consolidation or even better, some form of direction prior to the earnings release after the bell.

Good luck!

Every news reporter is talking about how bad the markets are, while market technicians have been waiting for the S&P500 to simply reach the bottom of its monthly channel!

The S&P500 reached the trendline of the lower channel on the monthly chart yesterday, January 18, 2008. It was tested THREE times already in April 2005, October 2005 and July of 2006. From there we shot higher and finally we are bad down. I bet you that once the market starts to go up all of these gloomy days will start sailing again. The information on the news gives us no information of what investors should do, only what happened.

Well, we have foresight - the Charts! The Charts tell us that is this monthly chart fails below $1325.99 then there is little chart support left, and we should exit the market and prepare for a recession; however, there is no threat of a recession, the only thing that is going on is a GAME that is being play with support and resistance! Forget about what the news is saying.

The market has reached a bottom area ranging from $1326.70 to $1355.73. This will be a real BULL MARKET again. When we do go up from here, the financial sector will stabilize and start moving up! It is time to catch the bottom. I am in SPY (the S&P500 ETF) and PEY, an ETF that pays just over a 9% dividend per month; it contains 60% of the financial sector stocks that are high quality companies that consistently raise their dividend every year.

Fortified Holdings Corp (OTCBB: FFDH) has traded sideways within a narrow trading range for 2 to 3 weeks. The one month chart shows a slight upward trend with predictable lows, and a resistance level at $0.45.

Due to the slight uptrend, it is possible for FFDH to finally break through resistance levels. Stochastics have barely broken the overbought ceiling of > 80, and has a good probability of moving higher.

If broken, FFDH could see substantial gains. Set your trailing stops at appropriate risk levels.

Biosolar, Inc (NASDAQ: BRSC) develops biobased solar panels as an eco-friendly alternative to petroleum based solar panels. This offers a substantial cost savings over petroleum based solar panels by using renewable resources.

BSRC has shown a strong bullish upward trend (Chart #1), and confined to a relatively predictable trading range with consistent highs & lows. Stock has recently broken out of this trading range into newer highs on strong volume several times its historical trading day average.

If purchased, keep stop loss orders set relatively tights (i.e. 10% - 15%).

Based on a monthly chart, I believe that the financial sector ETF, symbol: XLF, has reached a bottom. We are at horizontal support back in October of 2005 at $28.78. This is exactly, to the cent, where the 50% pullback is from the lows of the beginning of the rally in the financial sector April 2003 to its highs in May 2007. This is also where it meets trend line support from the lows of May 2004 to the lows of October 2004.

The weekly RSI is diverging, pointing to a rally! The Monthly RSI is at oversold levels way back in 2002 when the rally in the financial sector first bottom out from the bear market that ensued in 2000! This is awesome! I have took a position based on the divergence and will keep a close watch in this sector’s RSI, waiting for it to break the weekly downward RSI trend line.

The CCI 14 and 6 is also giving a counter-trend pattern called “Hook From Extreme,” but it has not broke the downward sloping trend line yet although the 6 has already crossed over the 14.

I am still holding on to SPY and other index ETFs. I left Yahoo last month when the divergence did not work out. I find myself mainly holding ETFs with a big smile of satisfaction.

I drew up a daily chart on Yahoo! in order to see the weekly Inverted Bullish Head and Shoulder much closer.

It can be seen that support is at the low of support on the left shoulder was on 12/21/2006 ($25.13). $24.74 is the 71.8% fib, and it is also horizontal support if we consider past resistance becomes future support at $24.74 at the high on August 13, 2007.

So there is strong base of buyers from $24.74 to $25.13. The stock shoulder not penetrate through this base; however, as can be seen from the chart, it took 7 months to go from left shoulder to the head, and five months to go from the head to the right shoulder (where we are at now). It took at least 33 days for the head to form and make a new high. It took 20 days for the left shoulder to form. It may very well take 20-33 days for the right tip to form.

We are now approaching the 30th day on December 12, 2007. We should reach a new high by the 33rd day, especially if interest rates are cut today (12/11/2007).

Another thing to be noticed about Yahoo! Is that anytime the stock reaches horizontal support the day becomes green, either the same day or the next day. Yahoo!!!!!!