The second quarter ended in bleak fashion as institutional investors were busy selling holdings. A drop in consumer confidence didn't help stocks as higher oil prices and economic uncertainity were major factors for the drop. There wasn't many places to hide on Tuesday, except for leading stocks. The NYSE indexes suffered heavy volume selling throughout much of the day only to see late day support. Over on the NASDAQ volume was subdued for much of the day until the last 5 minutes when a rush of volume hit the NASDAQ. Quarter end window dressing was nowhere to be found on Tuesday. With the quarter end behind the market and earnings season upon us it'll be important to see the market see some accumulation.
As it stands now the Dow Jones Industrial average is leading the way with 5 distribution days. Although 5 is a high number the Dow is a lagging index and its distribution days are minor not major ones. The S&P 500 has seen 4 distribution days but like the Dow its distribution days are minor. What I am focused on is the leading index which happens to be the NASDAQ and it only has 2 days worth of distribution. Remember, it is quite normal to see distribution show its face when the market has made an uptrend. We'll need to see the big institutional players step up and begin operating on the long side buying up quality growth stocks.
A positive market internal today was the advancers versus the decliners. One would assume the number of decliners would have outpaced the number advancers Tuesday, but this simply wasn't the case. The market actually saw the number of advancers edge out decliners. Not typical action of a major distribution day. In addition the number of New Highs versus New Lows continue to be very positive. The ratio was nearly 10 to 1, hardly the bearish action you'd expect. Adding to the positive internals was the put/call ratio jumped over 1.07 showing fear crept back into the market. Fear is always a necessity when keeping an uptrend intact. Market internals certainly dampen the distribution seen in the market today and tells us strength still lives.
As the third quarter begins it will be interesting to see how the market will react. More importantly, July 1st will set the tone for the market for the coming weeks. A few questions will be answered and the biggest one will be if the "big boy" institutional players will step up and accumulate stocks or will they continue to sit on the sidelines? After tomorrow we can assume Wall Street will take an early start to the holiday weekend kicking of festivities early. Until then, make sure you reign in your laggards by cutting losses short and keeping strength. Keep positive and stay focused!
"The point is not so much to buy as cheap as possible or go short at top price, but to buy or sell at the right time." - Jesse Livermore
my personal top longs the past three months UP TODAY: VOCL 133% PARD 74% ACTG 46% CRAY 63% VVTV 52% SIGA 58% DDRX 28% CHLN 85% PALM 76% SPPI 41% GOK 48%
FREE Youtube Video to help you learn how to interpret the market CORRECTLY:
Tuesday, June 30, 2009
Wednesday, June 24, 2009
Volume Slips Across the Board as the NASDAQ and S&P 500 End Higher
The market shrugged off news from the FOMC meeting as well as the 5 year Treasury auction today. However, the big institutional money stayed on the sidelines as volume slid from Tuesday's action. Ben Bernanke and the FOMC decided to "do nothing," favoring the status quo over "change." Initial reaction from the market was negative but it did find its footing. There were a few tense moments where the market did look like it was about to crater, but support came to the rescue. Lacking volume, this market continues to look more on the weak side than the strong side.
Big stock leadership did not overwhelm the market with great price and volume action today. Although, some leadership did recover at key moving averages. They were few and far between, but still there. What is concerning is the lack of conviction on upside moves these big stocks have. Today we saw far too many big stock leaders move higher in price but in lower trade. This type of action is letting us know there isn't conviction to the upside and the path of least resistance for these stocks is beginning to turn lower. The big stocks are very good indicators of what is to come for the market and if they decide to run lower our market swill follow their lead.
Once again the market will be paying attention to the 7 year auction to be held Thursday. This time the attention might not be as keen as it was with the two year auction held on Tuesday. Traders are now conditioned to think the 7 year auction will go off without a hitch as the two year and 5 year notes were successful auctions. Although it will be interesting to watch the market reaction, it is nothing we are going to be basing buy and sell decisions off of.
The lack of big stock leadership and the low volume on the exchanges has me quite worried what we are about to run into. From the March lows to our most recent high in the June the NASDAQ has run almost 50% without any pull back whatsoever. The Shanghai index from its late October '08 low to its most recent high in June the index has run 76%. However, in mid-February to the first week in March the index corrected nearly 18%. For a few weeks that pullback has allowed the index continue its uptrend. It is about time we have our market take a break to allow this uptrend to continue its march higher. Unfortunately, it well remain unseen and we'll need our big stock leadership to start gaining more support.
While this market continue to be under pressure it is wise to err on the side of caution rather than try to be a stock market hero. Keep positive and your losses small.
top longs/(shorts) with total returns making me money TODAY: AVNR 103% CAST 48% ACTG 32% COOL 36% ANV 37% SNIC 42% VVITV 87% TRIB 22% VVTV 42% PWAV 76% KAD 56% TXIC 51% STEC 206% WPRT 45% VIT 79% MTMC 207%
FREE Youtube video to help teach you how to read the market CORRECTLY:
Big stock leadership did not overwhelm the market with great price and volume action today. Although, some leadership did recover at key moving averages. They were few and far between, but still there. What is concerning is the lack of conviction on upside moves these big stocks have. Today we saw far too many big stock leaders move higher in price but in lower trade. This type of action is letting us know there isn't conviction to the upside and the path of least resistance for these stocks is beginning to turn lower. The big stocks are very good indicators of what is to come for the market and if they decide to run lower our market swill follow their lead.
Once again the market will be paying attention to the 7 year auction to be held Thursday. This time the attention might not be as keen as it was with the two year auction held on Tuesday. Traders are now conditioned to think the 7 year auction will go off without a hitch as the two year and 5 year notes were successful auctions. Although it will be interesting to watch the market reaction, it is nothing we are going to be basing buy and sell decisions off of.
The lack of big stock leadership and the low volume on the exchanges has me quite worried what we are about to run into. From the March lows to our most recent high in the June the NASDAQ has run almost 50% without any pull back whatsoever. The Shanghai index from its late October '08 low to its most recent high in June the index has run 76%. However, in mid-February to the first week in March the index corrected nearly 18%. For a few weeks that pullback has allowed the index continue its uptrend. It is about time we have our market take a break to allow this uptrend to continue its march higher. Unfortunately, it well remain unseen and we'll need our big stock leadership to start gaining more support.
While this market continue to be under pressure it is wise to err on the side of caution rather than try to be a stock market hero. Keep positive and your losses small.
top longs/(shorts) with total returns making me money TODAY: AVNR 103% CAST 48% ACTG 32% COOL 36% ANV 37% SNIC 42% VVITV 87% TRIB 22% VVTV 42% PWAV 76% KAD 56% TXIC 51% STEC 206% WPRT 45% VIT 79% MTMC 207%
FREE Youtube video to help teach you how to read the market CORRECTLY:
Monday, June 22, 2009
Commodities and Technology Crumble Weakening Leadership and the Overall Market
By Market Speculator
Once again Crude Oil took a major blow Monday as well as other commodity prices. The IMF revised its growth causing panic in the World Recovery thesis. Technology stocks also took a tumble Monday as investors were fleeing technology names. Stocks were simply sold today as sellers wanted to cut loose at all costs. Closing at the lows of the day is a signal that sellers are in full control. Leadership has been showing weakness for the past two weaks and is finally beginning to weaken further at an alarming rate. Very nasty action today on the indexes as the market is now in correction mode.
Big stock leadership is always a great barometer for the market. Big insitutional players love the liquidity and low beta these stocks have. The price and volume action of these stocks are very important because it displays the mentality of the big institutional player. We have seen the big stock leadership crack a bit last week but that crack widen today. Two big stocks that have performed well in this market uptrend put in very ugly days. Gold and Platinum subscribers are aware of the ones I am referring to as I posted in our forums about the stocks. This is not that time to be fighting the market trend here, do not be a hero.
Big news this week as far as news is concerned. Most notably is the $104Bn Treasury auction set this week with a 2 year Treasury auction set to start tomorrow. Stocks wil be eyeing these auctions very carefully as they will signal the whether or not buyers have confidence in the United States Treasury. In addition to the Treasury auction is the Federal Reserve rate decision set to close on Wednesday. Many expect them to keep rates as is but it will be the wording of their statement that will be scrutinized. It is a given the market will react to news events this week. At this point, the market is signaling CAUTION ahead.
Leading stocks are simply worn out and have begun to roll over. On Friday, many leading stocks held key moving averages but volume was very light on Friday. Although it wasn't a glaring "signal" they were headed for trouble, but it was a clue trouble might lay ahead. Seeing today's action, you can not ingore their action. They are not healthy whatsoever and we are certainly not going to argue with their price and volume action.
Tread carefully in this market as it is giving us caution signals. Keep your eye on the ball and your losses small.
top longs/(shorts) w/ total returns since purchase making me money TODAY: VOCL 44% TRIB 24% CRTX 23%///TSTR 30% KAD 49% (CYT 65%)
FREE YouTube video to help you interpret the daily market action correctly:
Once again Crude Oil took a major blow Monday as well as other commodity prices. The IMF revised its growth causing panic in the World Recovery thesis. Technology stocks also took a tumble Monday as investors were fleeing technology names. Stocks were simply sold today as sellers wanted to cut loose at all costs. Closing at the lows of the day is a signal that sellers are in full control. Leadership has been showing weakness for the past two weaks and is finally beginning to weaken further at an alarming rate. Very nasty action today on the indexes as the market is now in correction mode.
Big stock leadership is always a great barometer for the market. Big insitutional players love the liquidity and low beta these stocks have. The price and volume action of these stocks are very important because it displays the mentality of the big institutional player. We have seen the big stock leadership crack a bit last week but that crack widen today. Two big stocks that have performed well in this market uptrend put in very ugly days. Gold and Platinum subscribers are aware of the ones I am referring to as I posted in our forums about the stocks. This is not that time to be fighting the market trend here, do not be a hero.
Big news this week as far as news is concerned. Most notably is the $104Bn Treasury auction set this week with a 2 year Treasury auction set to start tomorrow. Stocks wil be eyeing these auctions very carefully as they will signal the whether or not buyers have confidence in the United States Treasury. In addition to the Treasury auction is the Federal Reserve rate decision set to close on Wednesday. Many expect them to keep rates as is but it will be the wording of their statement that will be scrutinized. It is a given the market will react to news events this week. At this point, the market is signaling CAUTION ahead.
Leading stocks are simply worn out and have begun to roll over. On Friday, many leading stocks held key moving averages but volume was very light on Friday. Although it wasn't a glaring "signal" they were headed for trouble, but it was a clue trouble might lay ahead. Seeing today's action, you can not ingore their action. They are not healthy whatsoever and we are certainly not going to argue with their price and volume action.
Tread carefully in this market as it is giving us caution signals. Keep your eye on the ball and your losses small.
top longs/(shorts) w/ total returns since purchase making me money TODAY: VOCL 44% TRIB 24% CRTX 23%///TSTR 30% KAD 49% (CYT 65%)
FREE YouTube video to help you interpret the daily market action correctly:
Sunday, June 21, 2009
The Dow Jones Industrial Average Slips with Crude Oil While the NASDAQ Remains the Leading Index
by Market Speculator
Friday saw a quadriple witching day pushing volume well above Thursday's level. The Dow Jones Industrial Average had slipped lower closing just short of a distribution day. Over on the NASDAQ, the composite index witness a day of accumulation. However, during the session the indexes were not able to hold the opening move. Sellers took over after the morning frenzy of option traders closing/rolling their positions. Only the NASDAQ was able to close above in its upper range for the day, but barely closing above its upper range. More importantly, leading stocks once again showed strength many of the leaders saw positive action. It is clear the NASDAQ is the leading major index and has positioned itself to continue it's move higher.
We are certainly seeing a lot of positive action in leading stocks. There is also very nice action in a few big cap stocks. Institutions love playing large liquid stocks and we are certainly seeing the accumulation by the big boys. At Big Wave Trading, we are saying on top of these leading stocks and taking advantage of the gains they are showing us. Leadership is the number one factor to take a look at when reviewing the entire market. They will light the path the market will take.
Highlighting a secondary indicator is the ratio of New Highs to New Lows. Only 5 new lows were hit on the NYSE and NASDAQ while 75 New Highs were hit. Although we aren't seeing a massive amount of new highs the ratio indicates there is much more positive action than negative.
Something else to highlight is the percentage of stocks over their 20dma, 50dma, and 200dma. On a short-term bases only 46% of stocks are over their 20dma compared to 59% a month ago. Again, at the moment there are 73% of stocks over their 50dma while 81% were a month ago. Short-term, it appears we have yet to reach a point where stocks are oversold and we have seen a nice pull back in stocks. Only the 200dma has more stocks over it now than a month ago: 72% versus 52%. Even these levels aren't near record levels like we saw in late 2007.
It certainly would be nice to get a few more weeks of sideways or basing action in the market. This will allow for leading stocks to continue to work on consolidating into tight patterns rather than forming wide, loose faulty bases. We have seen a few leading stocks breakdown from wide loose patterns causing many people to be pushed out of the stock. The more basing action we get from the indexes the more time it allows for leadership to continue to pound out sound tight price patterns.
Happy Father's Day to all the Dad's out there, we hope you enjoyed a great day with your family.
Keep positive and always remember to keep those losses short. At Big Wave Trading, we'll continue to enjoy the gains our stocks are showing us.
top longs w/ total returns since 1st buy making me money: TRIB 20% DPW 37% ISTA 78% ADAT 20% AVNR 97% FIRE 46% CAST 57% PALM 47% CRAY 39% CLRT 30% ATSG 67% ARST 34% INSM 32% PONE 26% COOL 37% RBY 61% ACTG 30% KONG 79% ANV 37% SIGA 36%///GOK 40% TXIC 63% ESIO 23% PWRD 74% WPRT 41% RAD 174% INSM 58% ATSG 27% PONE 37% TSTR 28% JADE 26% RODM 41% CFW 37% JOEZ 29% PWAV 88% PRC 41% WPCS 41% FREE 47% CYCC 26% TMR 25% EPEX 93%
FREE YouTube video that will help teach you how to read the market CORRECTLY without bias (this isn't ABC, NBC, or CNN):
FULL SIZE VIDEO ONE, TWO, THREE, AND FOUR ARE AVAILABLE FOR SUBSCRIBERS ON THE GOLD FORUMS.
Friday saw a quadriple witching day pushing volume well above Thursday's level. The Dow Jones Industrial Average had slipped lower closing just short of a distribution day. Over on the NASDAQ, the composite index witness a day of accumulation. However, during the session the indexes were not able to hold the opening move. Sellers took over after the morning frenzy of option traders closing/rolling their positions. Only the NASDAQ was able to close above in its upper range for the day, but barely closing above its upper range. More importantly, leading stocks once again showed strength many of the leaders saw positive action. It is clear the NASDAQ is the leading major index and has positioned itself to continue it's move higher.
We are certainly seeing a lot of positive action in leading stocks. There is also very nice action in a few big cap stocks. Institutions love playing large liquid stocks and we are certainly seeing the accumulation by the big boys. At Big Wave Trading, we are saying on top of these leading stocks and taking advantage of the gains they are showing us. Leadership is the number one factor to take a look at when reviewing the entire market. They will light the path the market will take.
Highlighting a secondary indicator is the ratio of New Highs to New Lows. Only 5 new lows were hit on the NYSE and NASDAQ while 75 New Highs were hit. Although we aren't seeing a massive amount of new highs the ratio indicates there is much more positive action than negative.
Something else to highlight is the percentage of stocks over their 20dma, 50dma, and 200dma. On a short-term bases only 46% of stocks are over their 20dma compared to 59% a month ago. Again, at the moment there are 73% of stocks over their 50dma while 81% were a month ago. Short-term, it appears we have yet to reach a point where stocks are oversold and we have seen a nice pull back in stocks. Only the 200dma has more stocks over it now than a month ago: 72% versus 52%. Even these levels aren't near record levels like we saw in late 2007.
It certainly would be nice to get a few more weeks of sideways or basing action in the market. This will allow for leading stocks to continue to work on consolidating into tight patterns rather than forming wide, loose faulty bases. We have seen a few leading stocks breakdown from wide loose patterns causing many people to be pushed out of the stock. The more basing action we get from the indexes the more time it allows for leadership to continue to pound out sound tight price patterns.
Happy Father's Day to all the Dad's out there, we hope you enjoyed a great day with your family.
Keep positive and always remember to keep those losses short. At Big Wave Trading, we'll continue to enjoy the gains our stocks are showing us.
top longs w/ total returns since 1st buy making me money: TRIB 20% DPW 37% ISTA 78% ADAT 20% AVNR 97% FIRE 46% CAST 57% PALM 47% CRAY 39% CLRT 30% ATSG 67% ARST 34% INSM 32% PONE 26% COOL 37% RBY 61% ACTG 30% KONG 79% ANV 37% SIGA 36%///GOK 40% TXIC 63% ESIO 23% PWRD 74% WPRT 41% RAD 174% INSM 58% ATSG 27% PONE 37% TSTR 28% JADE 26% RODM 41% CFW 37% JOEZ 29% PWAV 88% PRC 41% WPCS 41% FREE 47% CYCC 26% TMR 25% EPEX 93%
FREE YouTube video that will help teach you how to read the market CORRECTLY without bias (this isn't ABC, NBC, or CNN):
FULL SIZE VIDEO ONE, TWO, THREE, AND FOUR ARE AVAILABLE FOR SUBSCRIBERS ON THE GOLD FORUMS.
Friday, June 19, 2009
Volume Eases Across the Board as NYSE Indexes Ended Higher
by Market Speculator
Thursday's stock market was quite a bore, even with the Philadelphia Fed reading came above the expected number. The reading showed contraction but far less than expected, suggesting things aren't as bad as they may appear. Stocks took notice and jumped higher, but could not hold the highs. From the highs stocks bounced around in lackluster fashion. News from the treasury market still isn't good the Treasury Department announced its largest ever auction. Bond prices fell as investors once again are fleeing the treasury market, not in fear of inflation but the massive amount of supply coming on the market. The market took little notice and continued its lackluster trade. Overall, the market was taking a breathier as options are set to expiry tomorrow.
On the positive side the NASDAQ was able to consolidate its gains from Wednesday's session. On the other hand the S&P 500 rose on lighter volume suggesting buying action on the index wasn't supported by institutional players. Remember, we need to see volume coming into stocks to show strength with a move higher. Without volume, the move quite possibly could turn out to be a headfake. Clearly the NASDAQ is much better behaved and the leading major index.
Leading stocks were largely untouched, displaying support at key moving averages. It is of the utmost importance we begin to see well rounded bases with proper accumulation. At the moment there are plenty of choppy bases without sound price patterns indicating we are in a choppy market. We could remain in a choppy market for awhile, but it'll be leading stocks giving us the signals whether or not the choppy action has ended. Remember, tight price action is ALWAYS an indication of strength and you should be paying attention.
Tomorrow's option expiration day can always add an element of surprise. Volume can either be normal, like any other Friday or it can be quite large distorting the overall movement of the market. Usually, volume from options expiry shows up at the beginning of the day's trading session. We'll know from the start if volume is coming into the market via options or regular buying. Investors Business Daily compares hourly volume from the day before and is a great way to see where volume is coming into the market.
We are still charging forward with this market, taking what we can get from it. Keeping focused and positive we are able position ourselves in the right position to extract gains. Always remember to keep your losses small!
top longs w/ TOTAL returns since 1st buy making money TODAY: INSM 29% ISTA 78% CLRT 25% ACTG 20% ADAT 22% CAST 46% AVNR 71% SIGA 35% DPW 21%///CVGW 21% TXIC 55% PARD 41% GOK 32% PTN 66% STEC 206% JOEZ 29% PWAV 85% WPCS 41% CSIQ 46% VIT 72% EPEX 90% PMI 87% RAX 134% CFW 32% CKEC 51%
FREE!!! YouTube Video to teach you how to interpret the market CORRECTLY (FULL SIZE VERSION AVAILABLE TO SUBSCRIBERS ONLY AS A BONUS TO BEING A MEMBER TO BIGWAVETRADING.COM THE PREMIERE ONLINE INVESTMENT COMMUNITY FOR ACTIVE INVESTORS):
Thursday's stock market was quite a bore, even with the Philadelphia Fed reading came above the expected number. The reading showed contraction but far less than expected, suggesting things aren't as bad as they may appear. Stocks took notice and jumped higher, but could not hold the highs. From the highs stocks bounced around in lackluster fashion. News from the treasury market still isn't good the Treasury Department announced its largest ever auction. Bond prices fell as investors once again are fleeing the treasury market, not in fear of inflation but the massive amount of supply coming on the market. The market took little notice and continued its lackluster trade. Overall, the market was taking a breathier as options are set to expiry tomorrow.
On the positive side the NASDAQ was able to consolidate its gains from Wednesday's session. On the other hand the S&P 500 rose on lighter volume suggesting buying action on the index wasn't supported by institutional players. Remember, we need to see volume coming into stocks to show strength with a move higher. Without volume, the move quite possibly could turn out to be a headfake. Clearly the NASDAQ is much better behaved and the leading major index.
Leading stocks were largely untouched, displaying support at key moving averages. It is of the utmost importance we begin to see well rounded bases with proper accumulation. At the moment there are plenty of choppy bases without sound price patterns indicating we are in a choppy market. We could remain in a choppy market for awhile, but it'll be leading stocks giving us the signals whether or not the choppy action has ended. Remember, tight price action is ALWAYS an indication of strength and you should be paying attention.
Tomorrow's option expiration day can always add an element of surprise. Volume can either be normal, like any other Friday or it can be quite large distorting the overall movement of the market. Usually, volume from options expiry shows up at the beginning of the day's trading session. We'll know from the start if volume is coming into the market via options or regular buying. Investors Business Daily compares hourly volume from the day before and is a great way to see where volume is coming into the market.
We are still charging forward with this market, taking what we can get from it. Keeping focused and positive we are able position ourselves in the right position to extract gains. Always remember to keep your losses small!
top longs w/ TOTAL returns since 1st buy making money TODAY: INSM 29% ISTA 78% CLRT 25% ACTG 20% ADAT 22% CAST 46% AVNR 71% SIGA 35% DPW 21%///CVGW 21% TXIC 55% PARD 41% GOK 32% PTN 66% STEC 206% JOEZ 29% PWAV 85% WPCS 41% CSIQ 46% VIT 72% EPEX 90% PMI 87% RAX 134% CFW 32% CKEC 51%
FREE!!! YouTube Video to teach you how to interpret the market CORRECTLY (FULL SIZE VERSION AVAILABLE TO SUBSCRIBERS ONLY AS A BONUS TO BEING A MEMBER TO BIGWAVETRADING.COM THE PREMIERE ONLINE INVESTMENT COMMUNITY FOR ACTIVE INVESTORS):
Tuesday, June 16, 2009
Stocks Take Another Dose of Distribution While Leaders Continue to Send Mixed Signals
For the second straight day in a row stocks were hit again with another day of distribution. The selling wasn't as fierce as it could be as volume lagged behind Monday's level for much of the morning. When selling took over it was then volume began to pick up the pace to surpass Monday's level. Stock market leaders once again flashed mixed signals, but the more we see these leaders fall the more troublesome the market becomes. We did see two leading stocks perform well but there wasn't enough upside leading stocks to outweigh the damage being down on the flip side. Leading stocks and the price and volume action are telling us this market looks to be choppy in nature in the trading days ahead.
The sloppy price action going on in the stock market leaders is not positive. Tight price action is a signal of strength while sloppy price patterns are a signal of weakness. The past few trading sessions we have seen very sloppy price and volume action from our leading stocks. It began last Wednesday when we saw our leading stocks begin to fail key moving average areas. Now, we have yet to see support come into these stocks to make a stand and show that they have the strength to move higher. Unless support comes in soon the leaders that are standing may not be for long.
Back to back distribution days are never a health sign either. However, volume is still below the 50dma suggesting selling is tame for the moment. It starts with the price and volume action of the leaders then it moves onto the indexes. At the moment, we are seeing the actions of the leaders finally showing weakness in the indexes. Now the market is flashing large CAUTION signs at the moment. It is wise to be taking profits and cutting loose stocks that have wild price swings. As I stated above, choppy price action is a sign of weakness not strength. We have already seen with a few leaders what happens when a stock displays choppy price action.
If we do end up rolling over we'll be on top of getting into shorts. We still have some long signals but at the moment this market is mixed at best. Until we get decisive one way or another we won't be plunging to either side. Remember, continue to keep a positive attitude and make sure you keep your losses extremely small. It is also wise to reign in some of your positions to protect you from any further downside. Stay focused and nimble!
top longs/(shorts) w/ TOTAL returns since 1st purchase making me money TODAY: PALM 52% ANV 40% KONG 79% CLRT 25% ISTA 72% THM 25% MRGE 41% PARD 43% TEN 22% CSIQ 33% RAX 124% KAD 61% RAD 208% RODM 34% EPEX 96% SOLF 44% SOL 83% ALTU 76% PONE 31% (CYT 61%)
FREE Youtube Video to help you read the market CORRECTLY without bias:
The sloppy price action going on in the stock market leaders is not positive. Tight price action is a signal of strength while sloppy price patterns are a signal of weakness. The past few trading sessions we have seen very sloppy price and volume action from our leading stocks. It began last Wednesday when we saw our leading stocks begin to fail key moving average areas. Now, we have yet to see support come into these stocks to make a stand and show that they have the strength to move higher. Unless support comes in soon the leaders that are standing may not be for long.
Back to back distribution days are never a health sign either. However, volume is still below the 50dma suggesting selling is tame for the moment. It starts with the price and volume action of the leaders then it moves onto the indexes. At the moment, we are seeing the actions of the leaders finally showing weakness in the indexes. Now the market is flashing large CAUTION signs at the moment. It is wise to be taking profits and cutting loose stocks that have wild price swings. As I stated above, choppy price action is a sign of weakness not strength. We have already seen with a few leaders what happens when a stock displays choppy price action.
If we do end up rolling over we'll be on top of getting into shorts. We still have some long signals but at the moment this market is mixed at best. Until we get decisive one way or another we won't be plunging to either side. Remember, continue to keep a positive attitude and make sure you keep your losses extremely small. It is also wise to reign in some of your positions to protect you from any further downside. Stay focused and nimble!
top longs/(shorts) w/ TOTAL returns since 1st purchase making me money TODAY: PALM 52% ANV 40% KONG 79% CLRT 25% ISTA 72% THM 25% MRGE 41% PARD 43% TEN 22% CSIQ 33% RAX 124% KAD 61% RAD 208% RODM 34% EPEX 96% SOLF 44% SOL 83% ALTU 76% PONE 31% (CYT 61%)
FREE Youtube Video to help you read the market CORRECTLY without bias:
Crude Oil and Precious Metals Lead the Market Lower as Volume Rises
Sellers stepped up to the market's doorstep today as commodities took another hit. Crude oil and precious metals led the market lower as the US Dollar rallied. Volume increased from Friday's level but finished below its 50dma suggesting the selling was far from panic selling. More importantly many leaders were able to find support at key moving averages but a few were hit hard. The market did see a lift near the close but is was far from a strong close like we have seen in the past. Nonetheless, the day was not a positive day for the market but wasn't damaging enough to end this uptrend.
The market might be teetering on the brink of another decline, but it was positive to see many leaders find support at their moving averages. So long as these leaders hold these areas and do not continue to break down this uptrend will remain in tact. It is important that the market leaders stay afloat as it will be the tell of the market. Selling can not continue in the market leaders and it will be important that we pay attention to them. If we can see buying interest show up for the market leaders look for the rest of the market to follow through on the buying.
If you are carrying losses greater than 5% at the moment you must take a look at your purchases. Most likely you are getting in the game too late. It will be important for you to cut those losses fast as they can turn into MAJOR losses rather quickly. The number one way to protect yourself in a market moving sideways waiting to break in either direction is keeping your losses small. By doing so you'll keep your powder dry in the event the market moves higher and you can jump into the leading stocks.
We are in limbo as the market looks a bit tired, but at the same time all signs are not pointing down. There are pockets of light. It is the outmost importance that you maintain a positive attitude and a bright outlook for your future. As my mom and grandmother would tell me "postitive things happen to positive people." In a way it is a self-fulfilling prophecy. I am a firm believer in keeping a positive, can do attitude in the market to keep you afloat and in the game.
I am certainly in the "wait and see" mode as we can break either way. If the leaders are sold off once again, then we'll be waiting for another follow-through day to occur. On the flip side if the leaders get support it'll keep this most recent uptrend in tact. Regardless, we'll be on top of the market in either direction.
Remember to always keep your losses small and to keep a positive attitude. There is nothing more important than your emotional balance in the market. Otherwise you could lose your stake. Stay focused and positive!
top longs/(shorts) w/ TOTAL returns making me money on MON: SIGA 45% ATSG 63% ISTA 59% AVNR 61% CYCC 30% SOL 78% PONE 27% PTN 25% RODM 32% ALTU 73% ACAS 27% NAVI 47% GLUU 22% NAVI 47% ACAS 27% ALTU 73% SURG 35% (CYT 60%)
FREE YOUTUBE VIDEOS WILL BE POSTED AGAIN STARTING TODAY. I BELIEVE MY VIDEO TECHNICIAN ARRIVES TONIGHT FROM LAS VEGAS BACK HOME AND I CAN START GIVING YOU A SMALL VERSION OF VIDEO ONE AGAIN. SUBSCRIBERS YOU WILL CONTINUE TO GET FULL SIZE WITH OTHER VIDEOS IN REAL-TIME W/ NO PROBLEMS.
The market might be teetering on the brink of another decline, but it was positive to see many leaders find support at their moving averages. So long as these leaders hold these areas and do not continue to break down this uptrend will remain in tact. It is important that the market leaders stay afloat as it will be the tell of the market. Selling can not continue in the market leaders and it will be important that we pay attention to them. If we can see buying interest show up for the market leaders look for the rest of the market to follow through on the buying.
If you are carrying losses greater than 5% at the moment you must take a look at your purchases. Most likely you are getting in the game too late. It will be important for you to cut those losses fast as they can turn into MAJOR losses rather quickly. The number one way to protect yourself in a market moving sideways waiting to break in either direction is keeping your losses small. By doing so you'll keep your powder dry in the event the market moves higher and you can jump into the leading stocks.
We are in limbo as the market looks a bit tired, but at the same time all signs are not pointing down. There are pockets of light. It is the outmost importance that you maintain a positive attitude and a bright outlook for your future. As my mom and grandmother would tell me "postitive things happen to positive people." In a way it is a self-fulfilling prophecy. I am a firm believer in keeping a positive, can do attitude in the market to keep you afloat and in the game.
I am certainly in the "wait and see" mode as we can break either way. If the leaders are sold off once again, then we'll be waiting for another follow-through day to occur. On the flip side if the leaders get support it'll keep this most recent uptrend in tact. Regardless, we'll be on top of the market in either direction.
Remember to always keep your losses small and to keep a positive attitude. There is nothing more important than your emotional balance in the market. Otherwise you could lose your stake. Stay focused and positive!
top longs/(shorts) w/ TOTAL returns making me money on MON: SIGA 45% ATSG 63% ISTA 59% AVNR 61% CYCC 30% SOL 78% PONE 27% PTN 25% RODM 32% ALTU 73% ACAS 27% NAVI 47% GLUU 22% NAVI 47% ACAS 27% ALTU 73% SURG 35% (CYT 60%)
FREE YOUTUBE VIDEOS WILL BE POSTED AGAIN STARTING TODAY. I BELIEVE MY VIDEO TECHNICIAN ARRIVES TONIGHT FROM LAS VEGAS BACK HOME AND I CAN START GIVING YOU A SMALL VERSION OF VIDEO ONE AGAIN. SUBSCRIBERS YOU WILL CONTINUE TO GET FULL SIZE WITH OTHER VIDEOS IN REAL-TIME W/ NO PROBLEMS.
Sunday, June 14, 2009
A Late Day Surge Lifts Stocks by the Close of the Day as Volume Indicates Wall Street Started the Weekend Early
by Market Speculator
In front of the market was elections in Iran and new threats being made by North Korea. Despite this potential negative news stocks were able to get a lift at the end of the day by a flury of buying. Much of the day volume had been tapering off much below Thursday's level as stocks sank. Stocks didn't much selling pressure to drive down prices. Showing institutions weren't selling off their holdings in a hurry, a positive sign for this uptrend. On the downside, many leading stocks were hit hard throughout the day. The late day surge did cover up most of the damange done by the selling. Friday's market session was an indication a market which is showing signs of basing.
A few leading stocks suffered damage, a few of them were not able to hold their 10dma. During powerful uptrends leading stocks will often find support at their 10dma and continue their march higher. The action seen on Friday is a more of an indication we are not quite ready to see leading stocks continue their march higher. Not all leading stocks suffered, many of them did find support at their 10dma. The ones that did not did find support at their 21dma and 50dma. Positive signs were all around the market Friday but they were in the price and volume action of the leading stocks.
In John Boik's Monster Stocks he noted in his research that leading stocks in an uptrend will often find support at their 21dma and never fail. Once failures begin at the 21dma for market leaders it is a sign the market has nearly reached to the top of its run. Although we've seen some leading stocks take hits we have seen a majority find support at their 21dma.
Volume on the indexes as mostly dried up over the past two weeks. On the Russell 2000 volume dried up this week as the index found support and closed within 1% of last weeks close. Tight closes are a sign of strength and is very important to spot these to take note of the strength. The NASDAQ and S&P 500 closed within 1% of their prior weeks close. This is a clear sign of positive consolidation for the market and should be clearing the way for quality growth stocks to setup sound price patterns.
Keep positive and never give up. Cutting losses short will only keep you in the game longer and your powder dry for opportunties the market may present to you in the future.
top longs/(shorts) w/ TOTAL returns since 1st buy making money TODAY: PALM 54% LPSN 20% COOL 43% ABVT 27% ARST 40% AVNR 36% ASCA 20% INOD 23% CLRT 25% ADAT 27% (CYT 59%)
top longs for PLAT members w/ TOTAL returns since 1st...TODAY: GOK 57% XTIC 64% CHDX 40% SNIC 70% JADE 56% BAA 52% PONE 26% AHD 26% CKEC 69% IRE 109% WSCI 29% JOEZ 37% RODM 29% GIII 37% PWAV 101% WH 36% CDII 37% APL 83%
FREE YOUTUBE VIDEO: My video technician is in Las Vegas and therefore the FRI and MON video will not be posted to YouTube till TUE. Video 1, 2, 3, and 4 are available for Gold and Platinum members. If my video technician gets a chance to upload them, I will post them here. Subscribers nothing will change for you.
In front of the market was elections in Iran and new threats being made by North Korea. Despite this potential negative news stocks were able to get a lift at the end of the day by a flury of buying. Much of the day volume had been tapering off much below Thursday's level as stocks sank. Stocks didn't much selling pressure to drive down prices. Showing institutions weren't selling off their holdings in a hurry, a positive sign for this uptrend. On the downside, many leading stocks were hit hard throughout the day. The late day surge did cover up most of the damange done by the selling. Friday's market session was an indication a market which is showing signs of basing.
A few leading stocks suffered damage, a few of them were not able to hold their 10dma. During powerful uptrends leading stocks will often find support at their 10dma and continue their march higher. The action seen on Friday is a more of an indication we are not quite ready to see leading stocks continue their march higher. Not all leading stocks suffered, many of them did find support at their 10dma. The ones that did not did find support at their 21dma and 50dma. Positive signs were all around the market Friday but they were in the price and volume action of the leading stocks.
In John Boik's Monster Stocks he noted in his research that leading stocks in an uptrend will often find support at their 21dma and never fail. Once failures begin at the 21dma for market leaders it is a sign the market has nearly reached to the top of its run. Although we've seen some leading stocks take hits we have seen a majority find support at their 21dma.
Volume on the indexes as mostly dried up over the past two weeks. On the Russell 2000 volume dried up this week as the index found support and closed within 1% of last weeks close. Tight closes are a sign of strength and is very important to spot these to take note of the strength. The NASDAQ and S&P 500 closed within 1% of their prior weeks close. This is a clear sign of positive consolidation for the market and should be clearing the way for quality growth stocks to setup sound price patterns.
Keep positive and never give up. Cutting losses short will only keep you in the game longer and your powder dry for opportunties the market may present to you in the future.
top longs/(shorts) w/ TOTAL returns since 1st buy making money TODAY: PALM 54% LPSN 20% COOL 43% ABVT 27% ARST 40% AVNR 36% ASCA 20% INOD 23% CLRT 25% ADAT 27% (CYT 59%)
top longs for PLAT members w/ TOTAL returns since 1st...TODAY: GOK 57% XTIC 64% CHDX 40% SNIC 70% JADE 56% BAA 52% PONE 26% AHD 26% CKEC 69% IRE 109% WSCI 29% JOEZ 37% RODM 29% GIII 37% PWAV 101% WH 36% CDII 37% APL 83%
FREE YOUTUBE VIDEO: My video technician is in Las Vegas and therefore the FRI and MON video will not be posted to YouTube till TUE. Video 1, 2, 3, and 4 are available for Gold and Platinum members. If my video technician gets a chance to upload them, I will post them here. Subscribers nothing will change for you.
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