An early morning rally due to the possible progress with Iran (don't count on it at all) was sold about three hours into the rally after another Fed head made hawkish statements about rate hikes and inflation. Moskow may not have been the reason for the fall in stocks but he certainly did not help. By the close the markets found some dip buyers and the selling eased.
At the close the SP 600 rallied .3%, the Nasdaq rose .1%, the Dow Jones Industrial Average fell .05%, and the SP 500 led to the downside with a .1% loss.
Volume was higher on both the NYSE and the Nasdaq. However, volume was still well below the 50 day volume average and was lower than Friday's session. Breadth was positive on both the NYSE and the Nasdaq. Advancers beat decliners by a 10-to-7 margin on the NYSE and by a 8-to-7 margin on the Nasdaq.
Thank God, there are only seven more days left of August. Then after that is Labor Day and then finally we can get back to business as usual on Wall Street. Until the traders return to their desk I am afraid there are another three more days of this crap.
Both the bulls and the bears are making good cases in the chatrooms and message boards I monitor. The bulls like the fact we have a follow-through and are holding recent support. The bears like the fact that we aren't gaining much traction to the upside and had a nice intraday reversal today. However is right doesn't matter. The facts remain that this market is dead and there is nobody there to trade it heavily. I wouldn't look to deep into the action this week. It seems silly being a bull or a bear right now in this driftless environment.
If you need to know about the actual market and the situations it is currently facing (support, resistance, trendlines), I recommend heading over to Investors Paradise and reading up on the postings of Phailin and Y. Gross. These two fellows understand the market and its cycles a lot better than I do right now. I only follow the trend. When it comes to figuring out what is next and what the past has told us on the market, these guys are as good as it gets.
The biggest news of the day for me was the fact that Iran has attacked and taken over an oil rig in Romania. If this just doesn't reinforce the fact of what is about to happen I don't know what is. Hamas going into Israel, Hizbollah attacking Israel, Iran attacking Romanian oil rig, and Somolia being overrun by Al-Quaida; does anyone see a pattern here?
Anyways, stay defensive, keep buys and shorts small until we get more follow through on this trendless and choppy market. Great luck out there and I will see you at Investors Paradise.
New Swing Longs (keep them small): EGN TZOO TXCO MIR MGPI KTCC FRO BTJ
New Swing Shorts: NONE
Longs Outperforming (low vol. non-IBD movers excluded): CVO-137 CTCI-68 VLG-50 BAM-43 SYKE-37 TYL-34 CXW-28 BWP-26 OMRI WNR NITE CTCM DGX HWAY BOT HMSY ALY GES RNST JTX CGX GISX MA VTIV VC
Shorts Outperforming (all): USG-50 SWC-35 NTE-30 GYI-24 BPFH-17 GTRC-15 RES MAS HCBK RS DSL NCI EXBD DDE FDX ARO TZIX HSY SIGI KG KMP CBD
Completely Cover Shorts: CNI CEN
Stocks On Radar Screen: BOOM AHS TPX CPA GEO IMKTA RNWK WEL SFL AETH OSG GMR LWAY EMS ZP
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