Stocks gapped down at the opening, possibly on fears of the North Korea missle test or a report that came out signaling that employment data is going to be super strong and that may keep the Fed hawkish on rates.
The Nasdaq fell 1.7%, the SP 600 fell 1.2%, and the SP 500 and Dow Jones both fell around .7%.
Volume was higher than the half-day trading session on Monday but you can not compare volume to that day. I look at this volume in comparison to the Thursday and Friday session. This was obviously a very quiet day for the Nasdaq and the NYSE's volume was lower than the rallies on Thursday and Friday.
Overall, the action in stocks still looks pretty good. There were a lot of charts that came up on the scan again today that appear to be making great bases. If they breakout or not, we will not know until later.
Today's pullback does not appear to be as bad as the numbers tell. After the gap down in the morning, stock market indexes basically just meandered around the lows. By holding up it appears traders were not in a hurry to pounce on the downside momentum. It appears stocks were not bid up simply because there was a Fourth of July hangover. I know I had too much fun; I am sure a lot of other traders did too.
If buyers do not step up and we start to selloff, I would start to get nervous on this follow-through. Until I see some more selling I am going to stick with my long side bias, for now.
It will be nice to wake up tomorrow and feel refreshed, unlike today. I hope everyone had a great Fourth of July. I know I did. Have a great day and I shall see you at Investors Paradise.
New Swing Longs: CPY DMX UHCP--charts posted at Investors Paradise.
Adding To Longs: TZOO
New Swing Shorts: NONE
Longs Outperforming: TZOO HSR-107 OMNI-211 TSCM-170 LCC-160 HMSY SKIL CXW CTCI-63 DGX UARM TRMA BUF PMTR-87 SIMC BSML FSII ALTH GMTC
Shorts Outperforming: Later
Stocks On Radar Screen: BDCO LCBM
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