Chartman: Careful, Market's Moved Back to Overbought

When we “spoke” last week, the market looked grim.  Very grim!  But, the charts hinted we were near a bottom. Or, at least near credible support.

And sure enough, after a dismal Monday, the market turned right around.  And turned around big, moving up 4% from Tuesday onward.

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However, the market gives and the market takes, and now I think the market has moved back to overbought.  Translation: be careful on the long side right now!

Now, if you want to be a bit more aggressive than “careful,” then you might want to take a stab at betting on a market retreat.  To do that, I like playing the reverse of the QQQ: QID.  Keep in mind it moves 2x the QQQ, so take a position half your normal size.

And naturally it’d be remiss of me not to mention Steve Jobs and Apple (NASDAQ:AAPL).  You’ve already read tons I’m sure, so I’ll leave you with this: he was our generation’s Edison.  R.I.P. Mr. Jobs.

As for AAPL, though, we have to be objective, and the story isn’t bright.  I love the company, but the stock looks like it’s about to break lower support.  If so, I’d look to buy in the low 300s.