The Daily Chartist: When Statistics Don't Tell All

Friday's stats may look good, but The Chartist says many stocks actually sold off after the open.
Author:
Publish date:

Dec. 6, 1999

Friday

was one of those funny days when the statistics looked good at first blush, but the individual stock charts showed how most stocks actually sold off after the opening.

Technical Analysis: Join the discussion on

TSC

message boards.

How do we reconcile this? I am still not a fan of buying those overstretched, Internet-frenzied names. They are the kind of charts which can reverse on a moment's notice, leaving big vacuums behind. The financials are acting much better, but it is still early for stocks such as

Chase Manhattan

(CMB)

.

Since the

NYSE

remains oversold, I believe it's better to be shopping in that arena -- especially on pullbacks -- than on the

Nasdaq

at this point.

Cumulative Advance/Decline Line

New Highs and New Lows

Overbought/Oversold Oscillator

Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at

KPMHSM@aol.com.