Pre Market - September 28th 2007

I want to thank Lisa for filling in for me the past couple of days while I was busy with a funeral for a fellow firefighter. Lisa is an excellent trader and market analyst. Rebeltraders is a team effort and she is an excellent partner.

We are waiting on some economic data here in the pre market and we will post another update before the market opens.

I want to discuss a chart here for a moment. There is so much talk about technology being the 'hot' sector to be in. I present the Semiconductor Index chart here for discussion. Note the strong resistance as indicated by the blue rectangle. This will not be a 'market leader' unless it breaks above resistance, then at that point we will have tech being a leader.

But, take a good look at the chart. Notice anything? A chart technician will spot this right away. It is the formation of a head and shoulders pattern. If the resistance level holds then the risk of a very strong down trend becomes more likely. The time to add technology stocks to your long term investment portfolio is if it breaks resistance. Until then tech is off limits for long term investments.