Stocks fell on lower volume for the second straight day. The Nasdaq fell right to its 50 dma and showed signs of nice intraday support right there so that is a positive to take away from a down day.
IBD changed its final volume figure yesterday to the proper number for the Nasdaq so they have reclassified their assumption table to the correct "two days down on lower volume." My TC Net and IB charts were right so I feel like I was right and IBD was wrong. Finally, I got them. Just kidding; I really don't care and...neither do they.
Right now the markets seem to maybe finding support after the recent dowtrend started. The markets the past two days have sold off early and then have just hung around those lows without breaking them. This could either be support or a small break before more lower prices. It is impossible to predict the future, so the best stance is to just be patient and see what the market is going to do.
The market has a lot of stocks well extended from the most recent bases but at the same time have already gone down enough to put most around their 50 day moving averages. So I could see a bounce happening here soon. But overall we are still pretty oversold on most oscillator indexes on intermediate term basis so that might indicate a period of choppy or quiet sideways action. I don't know which because I can not predict the future.
We shall see what Monday brings us. I hope you have a great Super Bowl Sunday. Go Steelers, go Seahawks. I, like most of this greatest nation on God's green earth, just want to see an amazing game. I don't think we will be disappointed.
New Swing Longs: RNAI
New Swing Shorts: NONE
Longs Outperforming Market: LIFC BEAV-31% DMC DXPE MCX-72% ORA-58% NWRE-55% UEPS PRPX COGO ERS-141% OXPS-65% PETS-135% IHS SAY VIMC SCHK GMXR-211% KEYS CRED-29% KLIC LDSH-48% TRAD-68% BTUI-98% BNT-72% FNX CKCM BOOM-418% NVDA-46% MDCC-29% SXC PNRG NDAQ-276% VSEC-30% NNDS KEX RVSN ATHR-55% CRDN-61% MSCC-71% MMK CUP FWLT-81% RUTH UDRL MSPD TVIA TXCO-45% BEAS OZN BWNG-54% ADLR PPCO TGB STXN-28% ANAD-113% REGN-44% KNOL WIRE-87% AKAM-36% GIGM-61% SMDI-50% THQI NAK-31% CMPX RES-138% DA BAM ALY-43% NUVA IT
Shorts Outperforming Market: NONE
Stocks On Radar Screen: TRCI GHDX ACEL
8 comments:
"they have reclassified their assumption table to the correct "two days down on lower volume.". So they previously counted the past 2 market days as distribution days by mistake(on the nasdaq)?
NO. Just yesterday.
They had bad data yesterday and called yesterday's Nasdaq drop a distribution day. But even then they said it really wasnt because volume was only .6% higher.
Well they were wrong. Volume was lower yesterday. So no distribution day Thursday or Friday. Just normal pullback in a bullish market, so far.
They have corrected it.
Hi, Josh. Glad to hear you'll be pulling for our Steelers here in Pennsylvania.
Are you more hesitant to buy right now? I have a few charts I was wondering about.
Does HANS pullback look decent to the 50 day or has this stock gone too far?
Pullbacks on MMUS and RELV? Buyable here? RELV pulled back to last breakout and MMUS seemed to bounce off 50 day.
Two cups w/ handles for you as well - thoughts on SURG and DYN. How do they both look?
Thanks in advance. Your blog is very helpful to me.
I am rooting for the Steelers. But if I had to place my bets, with a 1.6 x 1 ratio on the dollar, I would pick the Seahawks.
Hasselback is very underrated and Alexander is the best running back in the league, of course. So you can't be too confident in thinking the Steelers are going to win this game easily. I love the Steelers defense but I am not sure if they will be able to handle the offense of Mike H.
So my money is on Seattle but I will be rooting for the Steelers.
HANS: You are right about both. This stock is way too extended from its original base and is a bit too risky for a big position to be built. But at the same time it is bouncing nicely off its 50dma after a very quiet pullback.
Therefore, I think it is safe to nibble and take a poke at HANS but be ready to jump ship if it weakens. This stock has gone a long way the past 2 1/2 years. I am not sure how much longer it can continue uninterupted.
MMUS: The stock would make a nice long here, due to the quiet pullback to the 50 dma. I hate buying these with so much downside risk. But you have to sometimes to get the big gains that these stocks can produce. I have not sold any yet and would advise adding here.
If it breaks down through the 50 dma, sell all.
RELV: I wouldn't touch that with your money. Too much volume and big red bars in that chart. It doesn't pullback in quiet volume and the base is extremely jagged and choppy.
Still a good stock with great to fantastic fundaementals. So I am sure a pullback will be a buying opportunity. I just will not be participating in this great stock until it creates a more symetrical and rounder base with quiet volume in it. Then if it breaks out on high volume, I will go long.
SURG: YES! Beautiful setup we have forming here. I would put this on a watchlist with an alarm to go off if it ticks above that January high. A beatufiul chart. I like this pattern. Great eye.
DYN: Yes! Read above on SURG, lol. Great eye.
You are very welcome. Thank YOU for reading my blog.
Go Steelers. Just don't bet on them. Risk/reward ratio just doesnt favor that bet.
Do you like the base that VPHM is forming?
Yes, I do. VPHM's chart is wonderful. I am upset about missing it last year when I passed it up on July 5th.
How about that SURG! I rarely get excited but want to thank the reader that gave me the heads up on SURG. This stock gets me excited.
I am glad my question about SURG helped out. I was lucky enough to get in at the open. How do you handle a huge day like this? I think one of my weaknesses as a younger trader is the temptation to take profits when I get a big day like that. Do you just let those days ride and hope for the best, or take those quick profits? Also, was the rise in volume on Friday a clue at all for today's move.
What did you think of that Super Bowl? As a Steeler fan, I'm happy they won but it was a pretty crappy game by both teams.
SURG: SURG is just now breaking out if everything goes correctly SURG should just be starting its surge. This is a cup with handle breakout on HUGE volume. After a bit of calming down, it should make a great long. It needs to pullback to the high of the handle around 6.50 to be a bit safer of a long.
If you go to www.investorsparadise.com you can now get more commentary about the market from me.
Super Bowl was good. Not great but what a year for the Steelers. That was an amazing finish to the season and playoffs. Amazing. A little boring but still amazing.
Also even though I wanted the Steelers to win I made some "side bets" and went with the Seahawks thanks to the handicaping by Vegas. I thought I was smarter than them. Once again, I was proven wrong.
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