After a brief morning selloff, a boring week came to an end with a boring Friday. The boredom was a bit odd considering how many earnings we had. Besides the lack of action in the indexes there isn't much to talk about. I guess, you could say, the biggest story of the day was CAT dropping 14%. But IBD readers already knew that that sector had topped. You can kiss the Machinery-Construction stocks goodbye now.
The market indexes didn't do much on Friday. The SP 500 rose .12%, the Dow Jones Industrial Average rose .08%, the Nasdaq fell .06%, and the SP 600 led to the downside with a .66% loss. The good news about today's market was the fact that the IBD 100 led with a .2% gain. That is always good to see.
Volume was a tad higher on the NYSE and lower on the Nasdaq. Basically a day where it is impossible to draw conclusions on what the big boys are doing.
Breadth was negative on the NYSE with decliners over advancers by a 6-to-5 margin and negative on the Nasdaq by a 3-to-2 margin.
For the week it was the fourth week of gains for the SP and the DJ. The DJ rose .35%, leading the indexes to the upside. The SP 500 rose .22%, the Nasdaq pulled back .64%, and the SP 600 eased back .31%.
It was positive to see stocks get supported all week long on any signs of weakness. Just check your daily candle charts and your 60 minute charts the past five days. Stocks got support off the lows after every selloff. Only one word to say: Niccceeee! (I can't get the new South Park episode out of my head, ugh!).
The dominant story of the market remains earnings. We had plenty of them this week that were basically worthless to the overall movement of the indexes. There are plenty more to come next week and a Fed meeting to deal with so I am sure this will dominate the headlines all week.
I will, however, concentrate on my longs. I am still overall happy to mildly relieved to see with all the volatile action this earnings season (AGAIN!; thanks REG FD) my stocks continue to act well and are not causing me any large losses. Most setbacks are coming after modest price gains. The losses that I am taking are coming from my more speculative or iffy chart situations. Those stocks are not causing large hits to my portfolio. But combine those with flatlining stocks and commissions and you can see things aren't entirely wonderful either.
It is still a traders market that is overbought on the short term on many different oscillators. Bulls are creeping back into all the market sentiment surveys and this should help start a pullback as too many traders are now bullish. This pullback will probably quickly turn those jumpy traders back to bears and the uptrend can then resume. Why? Because now that some markets are at all time highs it is going to be hard to stop that kind of momentum. It is all psychology. The indexes are not saying that they want to stop. Until that happens my that are going up or holding support will remain my tell to stay positioned to the long side.
Have a great weekend and I will see you at Investors Paradise!
New Swing Longs: TCHC MDCI CMO
New Swing Shorts: NONE
Longs Up On The Day (low vol non-IBD excluded): STEC-29 INPH-33 CXW-37 DA-42 CVO-126 SOFO-36 DIVX RICK HMSY CPA KBAY CAB SVNT PERY BITS NITE DJO PRFT JST AWH LWAY AYE BEBE EVR DUCK LTM ICE TIBX BEAS HCSG ISYS HRZ ABCB ETE FORR HOTJ CBF TSYS REGN SVVS MDRX VVI NU ASML PHRM TTEC ILC BULK NYMX SZE BARI GTSI
Shorts Up On The Day: DDE-22 HYDL-16 ARLP ASA SM MDG
Stocks On Radar Screen: OMCL GOOG CVGR MDV AVCA PMD STRS UU GCOM NIHD RDYN SAI CREL SYNA ECGI SOV FTGX GGY MFRI NWK
No comments:
Post a Comment