The stock market averages were basically unchanged today, with some up .1% and some down .1%. Volume came in near the lowest of the year, as we enter the summer. This is your typical summer time August lull until Labor Day.
It appears the sellers took a break and buyers are sitting on the sidelines waiting for one side or the other to take control. In the meantime, however, the markets did reverse intraday today, again. This is like the 3rd of 4th time in the past week this has happened. This is bearish and not bullish. Today's blame is on MRK as the poor drug company was ordered to pay a huge settlement in court on Friday. MRK is appealing the decision. The intraday reversal in the broad index after this ruling indicates sellers are in control of this market, as bad news is bad and good news is not good.
The markets are near their 50 day moving averages. So a bounce is very possible. Price and volume action, however, will let us know which way the market wants to move from this very important support level. If prices rebound on decent volume: Alright. If price breaks down on an increase in volume: Uh Oh. Either way be prepared and have a game plan for both scenarios.
New Swing Longs: CCK EXAR PANC ADSK MII SYNC
Longs Outperforming Market: VRTX NRPH PTG
New Swing Shorts: PPH STJ HRB CHS SCSC MRK PDCO
Shorts Outperforming Market: HIBB
Opportunity Missed: REDF. Had to cut loss, due to rules.
3 comments:
wath u think of myog
I think MYOG is a freighttrain that shouldnt be stepped in front of.
I think shorting a stock this strong until it breaksdown is dangerous and just plain dumb. To short, wait for a breakdown. But...
...The stock is in a HOT industry, has good sales growth, and has a lot of momentum and accumulation behind it.
Therefore, it is not a buy here but if it would base for a prolong period of time, it would be an excellent long on the next breakout. For now the stock is so far extended from the 50 day moving average that a new buy has a very high probablility of showing a loss soon afterwards.
There a plan for going short and a plan for going long. Just what you want to have in the stock market; a plan.
Josh
I had a long term position with ptg for 2 months now and its starting to pick up on peoples scanners. Just had a huge buy back, low float and great earnings. Also most important, they have 7 dollars a share in cash and no debt.
I made a ton so far and seems like a safe stock to stick with for some time.
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