Hedgehog University Market Commentary - Friday 03/07/08

The Hedgehog University(HHU) is re-opening  at  the  Hedgehog.  I  will  
be posting the HHU  weekly  market  commentary  in  the  newsletter and 
building out a Hedgehog University section on the web site.  

	
Last week, we said "Let's do a little clarification here about what we 
should be watching.  Do we watch the DOW?  The S &  P?  The  New  York 
Composite?  The NASDAQ?" 

Basically  this past week provided some clues as to what the market is 
wont to do.  The various indices sent  the  same  message  in  varying 
degrees. We'll examine the charts in a moment.  

More than charts, we like to look at broad market numbers.  We monitor 
some  1300 stocks and of those,  195 are in Elliott Waves 5 down.  208 
made 150 day lows on Friday last. 23 are in Elliott Waves 5 up. 7 made 
new 150 day highs on Friday. 39 made an upturn on the weekly indicator 
and 448 made a downturn.  From all of this, we have to be very careful 
selecting longs,  but be watching because the market  is  at  a  level 
where it could bottom out here and commence either some bigtime basing 
or actually some upward movement.  

NYA (NYA 8672.24 - 03/07/08)

The chart we drew last week is now extended and we have suggested that 
a  WEAK  wave 5 appears to be in force.  It could terminate at 8343.62 
which is the Wave 3 low on January 23.  The Gann Wheel points at March 
9 and April 23 coming off the January 23 pivot low.  But look  at  how 
the Wave 3 developed.  It started down, then recovered, then continued 
down.  So, we will not necessarily be looking for a straight line drop 
to our anticipated target.  That's not the way markets work.  

Nasdaq (IXIC 2212.49 - 03/07/08)

We  see  that  the  Nasdaq has already reached the low we were talking 
about with the New York Composite.  So,  that March 9 Gann date  might 
be  significant.  The  lower  indicator  is the MACD and if the market 
were to turn up next week,  the MACD would be sending  a  very  strong 
divergence  message.  If  the security being charted reaches a new low 
and the indicator reaches a higher  low,  that's  a  Class  I  bullish 
divergence.  We  can only wait and see.  Do we look for more shorts or 
new longs?  We have two shorts in our model  portfolio  and  no  longs 
after the past week's activity 

 
Our  model  portfolio gained .56% this past week and is up 6.24% since 
January 25. Check out what we are doing!  

 
Don't forget you can sign up for the HHU Technical Analysis Course  by 
contacting the Hedgehog at 
mailto:hhu.trader@gmail.com

If  you have any comments or questions about Hedgehog University,  you 
may e-mail the Hedge Hog Technical Analyst at 
mailto:hhogprof@yahoo.com

DISCLAIMER:  The Hedgehog Website and the writers of  this  series  of 
lectures  have created this service to educate,  inform and elucidate.  
We will use accepted methods of fundamental and technical analysis  in 
our  explanations.  Investing  in securities carries with it a certain 
degree of  risk.  Neither  the  Hedgehog  Website,  nor  any  of  it's 
principals  or  employees  can  be  held accountable for any losses or 
gains made by any person following  our  methodology.  We  attempt  to 
provide  the  information in good spirit to be used in whatever manner 
the  reader  sees  fit  to  do  so.   We  use   charts   provided   by 
Equis'Metastock  (tm)  software,  e-Signal's  Advanced  GET  (tm)  and 
BigCharts (tm)