It was a mixed day for the markets, with price and volume. NYSE was down, Nasdaq was up and the same with volume on each exchange respectively.
I saw a lot of failed breakouts and reversals today. That along with the poor breadth has raised some red flags with me. However, the trend is up and the markets continue to climb this wall of "small" worry.
Still something just doesnt feel right. I am not sure which way we will go from here. Up, down, or sideways is possible with all the different chart patterns I have out there. But a lot of my long term holding are still going higher and make nice moves quite often. It is the new longs in my portfolio that are having trouble and that is troubling in itself.
I guess we will wait to see what happens, like always. But the new longs acting funny is just not what I would expect if the Katrina disaster is going to help us.
If all that money coming in to the economy from the Katrina disaster was going to help move the stock market higher I sure have not seen it on the volume statistics.
We are still barely doing above average volume on most days. The NYSE during its most recent turning point was very positive. But since then it has been lame all across the board. That is a sign that the money is not "pouring" into the stock market.
If we get some Nasdaq days up with volume around the April/May levels I will be a lot more happy with this rally. But for now this current rally is under my red flag watch for more signs of weakness.
New Swing Longs: IIJI DEPO TMO IMN MSLV
Longs Outperforming Market: REDF MOBE RTSX NTES EZPW WFR BTUI PWR CLHB NTGR VTIV PETS ROS
New Swing Shorts: WB IPCR
Shorts Outperforming Market: SPH
Stocks On Radar Screen: CWBS HDSN CAV HWKN
2 comments:
Hello Josh
Two more questions to ask:
Concerning shorts, aside from what you have already suggested me, do you have special considerations about TSV18, MS, RS and BOP. What do you like to see in these indicators that triggers your interest to take a short position? Which are the imperative Dos and Don'ts about shorts in relation to the above indicators?
On your positions (longs or shorts) do you use "trailing stops" at all. I imagine you set your targets and tighten your stops as you get closer, but in the beginning as you open a new long or short position do you like trailing stops or is any particular disadvantage in using them? My broker is IB.
Thanks as usual for the good advise.
Just use the indicators in the opposite way you would if you were going long. Turn the long charts upside down and there you go.
Always use trailing stops and scale out of positions if you have realtime stock brokerage. I hate using Scottrade to trade small stocks. I REALLY HATE IT. Too much commission charge to scale in and out.
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