Will health care law passage torpedo the market? Stops are in.


It will be interesting to see whether fears of higher taxes from the passage of the health care bill will cause a downward reaction in the market this week. Jim Cramer thinks so.   But I am a trend follower and will wait for the market to signal its intentions.   I had moved my stops up last week and was sold out of a few things.   I refuse to give all of my profits back from the recent rally. There are a few warning signs from my indicators.   While the GMI

remains at 6 (of 6) and the GMI-R at 10 (of 10), the number of Nasdaq 100 stocks with their MACD above its signal line is now at 80%, down from a high of 93% on March 9.   And the short term stochastic is now above the long term stochastic for only 22% of all Nasdaq 100 stocks, compared with 75% on March 10. The MACD and stochastic indicators often show weakness before it shows up in my other indicators. Friday was the 21st day (U-21) of the current QQQQ short term up-trend. I will just sit back and let my stops guard my holdings.

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