It was a mixed day for the markets as small caps and technology stocks led the way while big caps lagged. However, it wasn't that bad as the only index with a loss was the SP 500 and it was very small. The Nasdaq keeps the winning streak alive with five in a row and it was the third day in a row the gains came on higher volume. Pretty good but not great.
At the end of the day, the Nasdaq led the way with a .6% gain, the SP 600 rose .4%, the Dow Jones Industrial Average rose .1%, and the SP 500 ticked down less than .01%. The big winner of the session was the Semiconductor Index rising 1.8%. The Electronics-Semi Equipment and the Electronics-Semi Mfg. were the leaders in that industry.
Volume was higher on the Nasdaq and was lower on the NYSE. But the one constant theme was volume being below the 50 day volume average on both exchanges. That makes it 15 in a row for the SP 500 and 9 in a row for the Nasdaq. Breadth was positive on the NYSE by a 5-to-3 margin and positive on the Nasdaq by a 3-to-2 margin.
There was really only one piece of news that mattered to the market today and that really didn't have an impact. It was still nice to see the GDP revised up to 2.9% from 2.5%. However, they were looking for 3%. But that market news really doesn't matter anyways.
What I want to focus on today was something that stood out like a sore thumb in the chatrooms I monitor. The negativity out there seems to me to be very thick. I am not sure if this whippy market is making traders crazy but some of the comments I am reading in these rooms have the sound of a desperate trader confused beyond belief.
I for a fact no that there are not a lot of people long this market and everyone is looking for the same thing in September. I wouldn't put it past the market to allow everyone to be right but how often does that happen? Something feels strange out there. I think it is more bearish than what it appears. There were some sentiment numbers given to me today that support my theory. I think it showed only 18% bullish!! That goes along with the bulls and bears matching each other in June on the II Survey and the market having a follow-through day with lots of nice charts breaking out.
So I want everyone to be aware that it is bearish out there. If they are talking about there being no God in #activetraders to them talking about a recession in #daytraders you can be sure it is negative out there. That means that in the short-term there could be enough steam for further advances, even with the market showing overbought conditions.
However, with all of this we still have to exercise caution as this rally is on low volume and the bears do have valid points that I have gone over ad naseum over the past week.
But as long as I keep getting all of these pretty charts--Eight more tonight--I am going with the trend and going long these gems. The GES and TZOO will be in the bunch but the TZOO purchase, once again, should NEVER have been taken. Besides those two, the other 50 stocks are doing fine. So why should I argue with that. I will let the sad boys in #activetraders and #daytraders do that. And besides those two rooms, you should check out RevShark's and Jim Cramer's blog. Tons of hate talk. I even got one today. I was proud of myself.
Great luck out there and don't ever give up. I will see you at Investors Paradise. Aloha.
New Swing Longs: BEBE KAI ABMD IIVI BEAS MEH WGA VRGY
New Swing Shorts: NONE
Longs Outperforming Market (low vol non-IBD excluded): CVO-141 CTCI-64 IHS-60 TYL-39 SYKE-38 HMSY-29 BWP-28 OMRI PSPT AHS TRMB HSR NITE IMA RNST PRFT HWAY MO BMR DUCK IMKTA DJO SEIC IDXX VTIV CTCM BRR EMS TTEC BMRN MFA SVNT KONA KHDH
Shorts Outperforming (all): JOYG-38 DDE-15 RES BTH IYT PDCO HTLD WTI WERN X XPRSA HYDL HSY ATPG GSF STNR CPE NGS
Completely Cover Shorts: TZIX
Stocks On Radar Screen: HRT XING DRYS DLA VARI MOLX MIKR ZTM BPO HURN ISBC DKS LYG PCCC MRN PCC
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