Tuesday, June 26, 2007

Arcelor Mittal (MT) breaks and Dover Corp. (DOV) retests the breakout

Yes, Apple had a little sell the news action today and I'm kicking myself for not writing about it earlier. I was expecting such a reaction and wonder if there will be any follow through. Apple's break today reminded me about some of the other market leaders that have stayed very strong through this volatile market action.

Steel, steel, and steel have led this market since the lows of this last summer. I have been anxiously waiting to see if they would ever come down. Today looks to be the day. Arcelor broke its uptrend line and is now headed for the $42 level. MT has been signaling a sell for months now but has refused to break. This will be a good short on any bounce up.

Dover Corp. has a great chart for a long entry. It broke out and is now testing the breakout point. This is a classic "resistance becomes support" chart. If the market wasn't getting so ugly I would be all over this.

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