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Rob Perrego

Who is Robert Perrego?

When WorldCo's Wall Street traders needed to know how to read a stock chart, they went to Robert Perrego.

Robert Perrego was a Managing Director and a Proprietary Equity Trader at WorldCo LLC for five years. Using Technical Analysis and Chart Reading techniques, Robert profitably traded over 100 million shares of stock worth billions of dollars for his personal account.

Robert delivered weekly lectures on Technical Analysis for WorldCo's other traders. The tapes of these lectures became required viewing for all new traders at the firm. These videos inspired the creation of the educational package now being sold at StockTradingCards.com.

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The Dow Jones Industrial Average stops at its 50


If you think the moving averages or the charts do not matter then why did the DJIA, a 10,000+ point index stop at the 50 day exponential moving average three times today?  The DJIA closed 1 point below the 50 at 10,434.


These days the market is hyper sensitive to news out of Europe, and with the government bond autionin Spain going well the good news was a boost to equities.  Taking away from this good news was bad that came in three’s with the new jobless claims sharply jumping to 22,000 higher than expected, the leading economic indicators came in lower than expected (o.6% vs. 0.4%) and the final nail was when the Philadelphia Fed Survey was an 8 when a 20 was expected.  Can this index go to 0? 


The market has come off the June 7th bottom and broken through its downtrend line and its 200 day EMA.  Gold closed at a new all time high today, and this means there is still a good amount of worry to go around.  With no more bad news the DJIA should take out the 50 tomorrow and close higher.


If you are looking for a gold miner stock, the charts for Eldorado Gold Corp. (NYSE: EGO) and Barrick Gold Corp. (NYSE: ABX) look strong.  A play in the HMO space is Aetna Inc. (NYSE: AET).  Today Aetna announced they would surpass analyst expectations for the second quarter and the stock was up 4.46% while breaking above its 50, 150 and 200 day exponential moving averages on above average volume.  A tech play would be NVidia Corp. (NSDQ: NVDA) breaking above its downtrend line on above average volume.


I am not going to sit here and recommend you buy, buy, buy all day.  If the DJIA fails to take out its 50 the market players will start to remember the bad U.S. economic reports more than the good news out of Spain.  As far as the jobless claims go, the hiring for the census is tailing off and the 22,000 jump (above expectations) is indicative of deep and persistent economic problems here at home.  For the simple reason of so many Americans out of work, I am long term bearish.  Be careful out there and do not be afraid to go to cash.

June 18, 2010

 
 

 

 

 

 
 

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