Wednesday, August 8, 2007

Moodys and .... Revisited

I had mentioned Moodys prior and it looks like we are getting the bounce I had hoped for. The ratings agencies are going to be a major scapegoat in the credit debacle if not THE scapegoat. Never underestimate the venom of the crowd when they turn on you (I think someone in ancient Rome said that). MCO is rallying right into the broken trend line and some significant resistance around $60.

I wanted to revisit which I highlighted a while back. You can click on the link on the side for the chart. I suspected a double top and it looks more and more possible. The action over the last few days is classic. A low volume, short term violent rally. A combination of short covering by late shorts and classic buy the dips by the perma-believers. I would be very surprised for RATE to better the 50 day but you never know, stranger things have happened. Good trading to you

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