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Multi- Year Tops are Building

March 16, 2008 1:27 PM

Many stocks appear to be building multi-year tops in the charts. This is a little scary for long term investors, especially in those stocks. Some of these highs may never be broken.

One stock that most likely has hit multi-year highs, possibly a”forever” high, is GOOG. Once $616 cleared, my charts strongly said sell any and all strength in GOOG, and clearly they have.

I also believe NOK has hit a multiyear high at $42.22.

Some that I could list, like GOOG, are reasonably obvious and far too late to take that trade, so let’s look at some where “trouble is brewing” and are currently Wall St. darlings and everyone alive loves them.

DE: The possibility exists that we may have seen a multiyear high in Deere. While the chart has not confirmed this, as of yet, extreme caution is in order above $90 here. There will be great caution near the highs on DE and you should avoid it near the highs or even consider shorting it below the high, unless it clears. The key number for DE is $71.20. I would look to be long this stock above that number for a one time bounce. If $71.20 clears, big trouble is likely for Deere.

I will be looking at some others, and update when I find a “darling” in trouble….

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