Oct 27, 2004

Nightly charts

Posted by Hello!

I wanted to point out the bullish wedge forming in Japanese stocks. The EWJ (Equity Webs Japan) is a closed end fund that tracks the Japanese stocks and it has a very similar wedge formation to the Nikkei. Owning EWJ lets you benefit from both rising Japanese stocks and a rising Japanese currency.

Posted by Hello!

The next chart is the homebuilder TOL (Toll Brothers). The homebuilders had a pretty sharp correction in the past month but are gaining some impressive volume on this bounce. TOL appears to be making a cup and handle. It still has a long ways to go to complete a breakout but it caught my eye because I thought I would highlight it. A breakout in homebuilders would shock many people at this point (myself included) and would probably do a lot to effect psychology. Almost certainly cause the bears to lose a lot of the conviction they have had since the FNM (Fannie Mae) news came out 3 weeks back.

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