Monday, June 26, 2006

Stocks Finish Slightly Higher On An Extremely Boring Low Volume Day.

A late day rally gave stocks a good showing Monday, with the SP 600 leading up 1%, the Nasdaq up .6%, and the SP 500 and Dow Jones Industrial Average up .5%.

Volume was lower across the board as the Nasdaq traded its lowest amount of volume this year. I am not sure how that was possible after yesterday's quiet trade but it happened. Breadth was postive on the NYSE by a 5-to-3 margin and postive on the Nasdaq by a 3-to-2 margin.

The relatively good showing by stocks today is pretty much meaningless, in my opinion, with the volume so low. I wouldn't get too excited about this rally attempt yet. We still have not had a follow-through and we are on day nine of the attempted rally. This pretty much assures me that we will not get a historically high odds follow-through on the markets. After day ten, you can pretty much forget about a proper rally unfolding.

This market is still in a dead stand-still until the upcoming FOMC meeting on Wednesday and Thursday. I have a feeling NOTHING is going to happen between now and then. Just more of the same old random volatile intraday action. If you are a daytrader, this is the perfect opportunity to scalp some quick cash. If you are a true power hitter (CANSLIM investor), this is the time to stay on the sidelines.

What else do you want me to say? If you have any questions feel free to post them at Investors Paradise on my stocks or market forums.


New Swing Longs: AEPI

New Swing Shorts: CTCO SYK

Longs Outperforming Market: IHS-33 TSCM-156 HSR-51 SYKE FCBP PCLN CTCI-44 VLG-26 DDS PNRG-62 ABI CXW OMNI-146 EGOV BWP CBEY-31 OPTV-25 BMRN FVE HGR TYL CVO-106 USEY

Shorts Outperforming Market: ELY ASA WSM CE RTP RS RES GPI FRZ BBBY KRI

Stocks On Radar Screen: LBIX

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