I was at home watching the market, reading the bad news, and just feeling tired of all the bad news so I decided to go surfing. When I returned I was sort of surprised to see a nice bullish reversal for all the indexes. This was a very nice way for stocks to end after the disgusting bombing in India.
The Nasdaq reversed a 1% loss to close up .6%, the SP 600 also finished up .6%, the SP 500 finished up .4%, and the Dow Jones Industrial Average finished up .3%
Volume was higher across the board. However, it was still below the 50 day volume average on both indexes (well the Nasdaq was even; whatever). A nice accumulation day. Breadth was positive on the NYSE by a 5-to-3 margin and positive on the Nasdaq by a 9-to-7 margin.
The supposed reason for the rally was that KLAC's CEO Rick Wallace said some great things about his companies business. This, therefore, sparked the rally that reversed the indexes off their lows and sending them higher.
This has now put the SP 500 and NYSE over their 50 dma's. This is technically a good thing but we will have to see some more follow-through off this key support/resistance line to get me to truly believe this medical, consumer product, food, and beverage rally in stocks.
The one thing I really liked was just the overall close of the indexes. Bearishness got pretty thick in the rooms I monitor today, after the India bombing, AA miss, and the Nasdaq being down 1%. It was enough to make me leave and go surf the horrible summer swell we are currently getting. Thanks a lot winds! Overall, I am pretty happy with the ending we got today. Not happy enough to make me a raging bull but happy enough to keep with my safety stock longs.
We are overbought, it is bearish out there, some shorts are working, some longs are working, some shorts are not working, some longs are not working, the SP 500 is above the 50/200 dma, and the Nasdaq is below the 50/200 dma. Do you know where the market is going to go next? If you do, why don't you let me know. I sure as the hell don't know which way we are going next. I know the short, sub-int trend is up and the intermediate, long-term trend is down. That is all I need to know.
Earnings are still coming up next week. Stay on your toes. Have a great day, I will see you at Investors Paradise.
New Swing Longs: LEAP DLP GEF XNR -- charts can be found on Investors Paradise.
New Swing Shorts: NONE
Longs Outperforming: CVO-105 PMTR-73 LRCX-32 OMNI-199 UARM CTCI-72 TZOO ITG GMTC-26 TRMA HSR-85 ABI CTXS-38 CPY BWP AKAM-107 RNST CTS TIII-30 BSML ATML EYE ECOL-37 HNZ USEY-25 ALSK KHDH UHCP
Shorts Outperforming: WSM JOYG BPFH VCG ZRAN MAFB BTH BBBY ITWO TXRH NAFC
Stocks On Radar Screen: IVAC NUVO
No comments:
Post a Comment