The market gets a late day save as the NASDAQ escapes back to back distribution days as the Federal Reserve rate announcement induces volatility. In the early going the market did stumble, but buyers stepped up and supported stocks prior to the Federal Reserve rate announcement. Stocks spent the majority of time heading sideways prior to the rate announcement. Then came the volatility, the Federal Reserved announced its decisions and stocks went into a volatile mode. By 3:30pm EST it appeared stocks were headed for a deep dive. However, buyers stepped up and saved the market, especially the NASDAQ from back to back days of distribution. Despite the market avoiding distribution today was another day of stalling and a bit of underlying weakness casting doubt on the current uptrend.
Precious metals started the day off well, but ended in negative territory. A big key was the reversal in the EURUSD reversal and pop in the US Dollar. Perhaps this was a one day wonder, but it does appear there is underlying weakness in some leaders casting shadows over the overall market uptrend. By no means does this indicate the “end” to the uptrend, but we need to be prepared for what the market has in store for us. Be prepared and stay focused.
Breadth has been waning and it can be seen in the McClellan oscillator a measure of breadth. While this indicator is a piece to the puzzle it doesn’t fill out the entire picture. The underlying weakness in some leaders is concerning and should be taken notice. However, we aren’t jumping the gun. A few of our leaders may be forming right sides of their bases rather than breaking down. However, any further selling here will certainly cast a very dark shadow on the market. Be prepared.
Cut your losses short.
Tuesday, December 14, 2010
Tuesday, December 07, 2010
Stocks Stage Reversal as Volume Soars
Current market rally stalls on volume
A brokered deal in Washington on tax cuts and the unemployment extension helped boost futures in the morning. Stocks jumped at the open only to face selling pushing stocks to lows by mid day. Volume on the NYSE was lifted by Citigroup after the government unloaded its remaining shares of the company. Citigroup traded 3.26 billion shares accounting for the majority of the change in volume on the NYSE. However, on the NASDAQ volume jumped more than 18%. The market at the end of the day looked poised to push into the highs of the day before the 3 o’clock hour. Rumors on the street of more insider trading probes helped sellers dump stock on the market. By the end of the day stocks finished on the lows putting in a terrible stall day.
Today is not the end all be all, but more importantly you must be aware of your stocks and how they are acting. One must take profits and cut losses. However, you have to go stock by stock and sell appropriately. If your stock is giving you profit signals ignoring them will only have you wishing you would have sold earlier. With today’s action there are a few stocks that appear to be flashing sell signals and we’ll adhere to them.
Sentiment remains high, last week we saw the AAII Bulls jump to 49.66 and has yet to see sub-40% for quite some time. Coupling the reversal today with sentiment a shake out or a deeper correction may be our midst. If today was not a signal of what is to come we’ll certainly see the market reverse course and continue higher. However, if our market leaders which took a hit today; decide to fall apart we’ll certainly see this market push lower.
Before today, the market and leaders were looking decent. Today’s action certainly put a dent into our leaders and we would like to see the damage limited to today. Regardless of what happens always play great defense and that is to cut your losses short. We may experience further selling, but the importance should be placed on your portfolio of stocks.
A brokered deal in Washington on tax cuts and the unemployment extension helped boost futures in the morning. Stocks jumped at the open only to face selling pushing stocks to lows by mid day. Volume on the NYSE was lifted by Citigroup after the government unloaded its remaining shares of the company. Citigroup traded 3.26 billion shares accounting for the majority of the change in volume on the NYSE. However, on the NASDAQ volume jumped more than 18%. The market at the end of the day looked poised to push into the highs of the day before the 3 o’clock hour. Rumors on the street of more insider trading probes helped sellers dump stock on the market. By the end of the day stocks finished on the lows putting in a terrible stall day.
Today is not the end all be all, but more importantly you must be aware of your stocks and how they are acting. One must take profits and cut losses. However, you have to go stock by stock and sell appropriately. If your stock is giving you profit signals ignoring them will only have you wishing you would have sold earlier. With today’s action there are a few stocks that appear to be flashing sell signals and we’ll adhere to them.
Sentiment remains high, last week we saw the AAII Bulls jump to 49.66 and has yet to see sub-40% for quite some time. Coupling the reversal today with sentiment a shake out or a deeper correction may be our midst. If today was not a signal of what is to come we’ll certainly see the market reverse course and continue higher. However, if our market leaders which took a hit today; decide to fall apart we’ll certainly see this market push lower.
Before today, the market and leaders were looking decent. Today’s action certainly put a dent into our leaders and we would like to see the damage limited to today. Regardless of what happens always play great defense and that is to cut your losses short. We may experience further selling, but the importance should be placed on your portfolio of stocks.
Monday, December 06, 2010
Gold and Silver Shine as Small Cap Stocks Lead Stocks
Bernanke’s interview on 60 minutes spark fear over his handling monetary policy
Gold and silver soar after Bernanke’s 60 minutes interview on Sunday night. Stocks consolidated nicely with the Russell 2000 index leading the way finishing higher by 4.44 (+.59) points. Volume was lower across the board, but Monday’s have become light volume affairs. Without economic news stocks moved lower during the morning and gained traction just after noon time. Only late day selling put a negative spin on the day, but with market leaders pushing higher the close was only a blip on the day. The markets consolidated nicely with market leaders pushing higher and our accounts higher.
Bernanke continues to push his loose monetary policy forced investors to gold and silver. The moves in the precious metals are an indication the market does not trust Ben Bernanke handling monetary policy. Gold and silver have been a measure of “money” for thousands of years, it has real history. The dollar is in effect a paper currency and is being devalued by the Fed’s loose monetary policy. It really boils down to the Government running surpluses and the Fed tightening monetary policy before gold and sliver stop their run.
Small cap stocks are taking the lead and this observation is a positive sign for the market. When small caps lead it signals risk adversion is taking a back seat and traders are willing to pay up for stock. When large cap stocks lead, the Dow and S&P 500 is a sign the market is getting tired. We saw this in October and November of 2007. In addition, with the NASDAQ showing positive signs and the Russell 2000 leading this market is poised to continue its run.
Not much in the way of economic news out this week and the headlines will certainly be pointed to the Jobless claim figures on Thrusday. In addition, the EURUSD will continue to be a cross currency rate to watch as the market has traded in concert with the rate. At some point the market will break the correlation, but for now they appear to be trading in tandem.
IBD went back into rally mode last week. They used the Dow Jones Industrial Average to turn the market in correction mode. As it turns out, this was not a wise move. We pay attention to our leaders and the NASDAQ, the Russell 2000 is not too far behind. Stick with the leaders and the laggards should be left behind.
Always cut your losses short.
Gold and silver soar after Bernanke’s 60 minutes interview on Sunday night. Stocks consolidated nicely with the Russell 2000 index leading the way finishing higher by 4.44 (+.59) points. Volume was lower across the board, but Monday’s have become light volume affairs. Without economic news stocks moved lower during the morning and gained traction just after noon time. Only late day selling put a negative spin on the day, but with market leaders pushing higher the close was only a blip on the day. The markets consolidated nicely with market leaders pushing higher and our accounts higher.
Bernanke continues to push his loose monetary policy forced investors to gold and silver. The moves in the precious metals are an indication the market does not trust Ben Bernanke handling monetary policy. Gold and silver have been a measure of “money” for thousands of years, it has real history. The dollar is in effect a paper currency and is being devalued by the Fed’s loose monetary policy. It really boils down to the Government running surpluses and the Fed tightening monetary policy before gold and sliver stop their run.
Small cap stocks are taking the lead and this observation is a positive sign for the market. When small caps lead it signals risk adversion is taking a back seat and traders are willing to pay up for stock. When large cap stocks lead, the Dow and S&P 500 is a sign the market is getting tired. We saw this in October and November of 2007. In addition, with the NASDAQ showing positive signs and the Russell 2000 leading this market is poised to continue its run.
Not much in the way of economic news out this week and the headlines will certainly be pointed to the Jobless claim figures on Thrusday. In addition, the EURUSD will continue to be a cross currency rate to watch as the market has traded in concert with the rate. At some point the market will break the correlation, but for now they appear to be trading in tandem.
IBD went back into rally mode last week. They used the Dow Jones Industrial Average to turn the market in correction mode. As it turns out, this was not a wise move. We pay attention to our leaders and the NASDAQ, the Russell 2000 is not too far behind. Stick with the leaders and the laggards should be left behind.
Always cut your losses short.
Thursday, December 02, 2010
Stocks Advance as the Euro Rebounds
Stocks approach 2010 highs as European Debt fears subside
A bigger drop in jobless claims then expected, did not stop the market from pushing higher closing just off the highs of the session. What did help the market was a jump in pending home sales figures suggesting buyers were out procuring new homes. Preliminary volume figures showed volume dropped on the day, but the underlying action was still poisitive. Financial and retail stocks were the big winners of the day as the European debt crisis fears subsided giving a boost to banks. Along side the rise in the market was the Euro stabilizing after its most recent run in with sellers. Leaders acted well today and the market had a decent follow-through from yesterday’s action.
It would have been better to see volume jump on the day as if institutions were rushing in to gobble up shares of stocks. Unfortunately, we may be seeing a similar story as we did last year with the market pushing higher without volume. The strong price action is enough to override the lack of volume we are seeing in the overall market. Again, pay attention to your stocks.
Bullishness once again jumped as the survey out of AAII showed bulls heading to 49.66% and bears at a lonely 26.21%. Bulls are off of their highs just from a few weeks ago, but the recent Euro news and market reaction failed to scare bulls from their positions. Perhaps this is the reason why we saw the market hold up on its 50dma. For whatever the reason the fact remains the market still is in position to push back into new high territority before any substantial move lower.
Tomorrow’s headlines will certainly highlight the jobs report set to be released at 830am EST. The market so far appears to be pricing in a decent report showing gain of 145k jobs. This week the market saw a better than expected rise in private payrolls from ADP and an upside surprise tomorrow should help the market. However, we aren’t in the guess/gambling game. We’ll take our clues from our stocks and act accordingly. Panic buying and selling only nets you red in your portfolio. Stick with your market leaders and use their action to navigate the market waters. Remember, “thinking” in this game is a dangerous thing.
Cut your losses and enjoy the weekend ahead.
A bigger drop in jobless claims then expected, did not stop the market from pushing higher closing just off the highs of the session. What did help the market was a jump in pending home sales figures suggesting buyers were out procuring new homes. Preliminary volume figures showed volume dropped on the day, but the underlying action was still poisitive. Financial and retail stocks were the big winners of the day as the European debt crisis fears subsided giving a boost to banks. Along side the rise in the market was the Euro stabilizing after its most recent run in with sellers. Leaders acted well today and the market had a decent follow-through from yesterday’s action.
It would have been better to see volume jump on the day as if institutions were rushing in to gobble up shares of stocks. Unfortunately, we may be seeing a similar story as we did last year with the market pushing higher without volume. The strong price action is enough to override the lack of volume we are seeing in the overall market. Again, pay attention to your stocks.
Bullishness once again jumped as the survey out of AAII showed bulls heading to 49.66% and bears at a lonely 26.21%. Bulls are off of their highs just from a few weeks ago, but the recent Euro news and market reaction failed to scare bulls from their positions. Perhaps this is the reason why we saw the market hold up on its 50dma. For whatever the reason the fact remains the market still is in position to push back into new high territority before any substantial move lower.
Tomorrow’s headlines will certainly highlight the jobs report set to be released at 830am EST. The market so far appears to be pricing in a decent report showing gain of 145k jobs. This week the market saw a better than expected rise in private payrolls from ADP and an upside surprise tomorrow should help the market. However, we aren’t in the guess/gambling game. We’ll take our clues from our stocks and act accordingly. Panic buying and selling only nets you red in your portfolio. Stick with your market leaders and use their action to navigate the market waters. Remember, “thinking” in this game is a dangerous thing.
Cut your losses and enjoy the weekend ahead.
Wednesday, December 01, 2010
Stocks Jump on Global Economic News
“Simplicity is the key to brilliance” – Bruce Lee
Stocks turn in a big rebound as economic data in the US and China along with a positive Portugal bond offering help ease the fears of a European debt crisis. ADP Employment change was better than expected as its payroll survey showed an increase of 93,000 private payroll jobs. ISM manufacturing index edged down from October, but was slightly better than expected at a reading of 56.6. Mid-day a rumor of the US backing the IMF bailout fund for Europe pushed stocks to their highs only to have the rumor to be false. Stocks closed just off the highs of the day, but in line with the highs before the rumor mill picked up. Regardless, today was a positive day for the market as stocks jump pushing the NASDAQ above its April high.
Volume was lower, but there was a volume surge at the end of yesterday’s session skewing volume. Many funds have November year-ends and we cannot rule out some funds adjusting their portfolios heading into their year-ends. However, for much of the day the pace of volume outpaced Tuesday’s session which is a positive sign for the market. Like September 1st the first day of the month has been helpful to stocks and today was no exception.
Market leaders enjoyed today session despite some negative action a few yesterday. However, we stress we must pay attention to our own stocks and make decisions based upon their action. Your holdings are your most important decision making tool you have to gauge the market. Are your stocks going through “normal” corrections? IGTE is one of example of an abnormal correction where the stock took a dive to its 50dma on big volume. The stock was a leader until yesterday and its weakness carried forward into today’s action. If all our holdings acted like IGTE we’d be out of the market, but fortunately it was the only one despite the broad market sell-off. Stick to your stocks.
There are a few certain things in the market and that is you will never be able to OUTRESEARCH the big instiutions in the market. They have vasts amount of resources at their disposal to conduct research, it is best to follow their movement rather than to outdual them. Many traders feel they can outsmart the big boys as well as the market in general. Unfortunately, you will never outsmart the market despite all your efforts Accept the reality of the situation and it will only be then you’ll be able to become a successful trader.
A positive day for the stock market and as the greats like to say: the trend is your friend.
Stocks turn in a big rebound as economic data in the US and China along with a positive Portugal bond offering help ease the fears of a European debt crisis. ADP Employment change was better than expected as its payroll survey showed an increase of 93,000 private payroll jobs. ISM manufacturing index edged down from October, but was slightly better than expected at a reading of 56.6. Mid-day a rumor of the US backing the IMF bailout fund for Europe pushed stocks to their highs only to have the rumor to be false. Stocks closed just off the highs of the day, but in line with the highs before the rumor mill picked up. Regardless, today was a positive day for the market as stocks jump pushing the NASDAQ above its April high.
Volume was lower, but there was a volume surge at the end of yesterday’s session skewing volume. Many funds have November year-ends and we cannot rule out some funds adjusting their portfolios heading into their year-ends. However, for much of the day the pace of volume outpaced Tuesday’s session which is a positive sign for the market. Like September 1st the first day of the month has been helpful to stocks and today was no exception.
Market leaders enjoyed today session despite some negative action a few yesterday. However, we stress we must pay attention to our own stocks and make decisions based upon their action. Your holdings are your most important decision making tool you have to gauge the market. Are your stocks going through “normal” corrections? IGTE is one of example of an abnormal correction where the stock took a dive to its 50dma on big volume. The stock was a leader until yesterday and its weakness carried forward into today’s action. If all our holdings acted like IGTE we’d be out of the market, but fortunately it was the only one despite the broad market sell-off. Stick to your stocks.
There are a few certain things in the market and that is you will never be able to OUTRESEARCH the big instiutions in the market. They have vasts amount of resources at their disposal to conduct research, it is best to follow their movement rather than to outdual them. Many traders feel they can outsmart the big boys as well as the market in general. Unfortunately, you will never outsmart the market despite all your efforts Accept the reality of the situation and it will only be then you’ll be able to become a successful trader.
A positive day for the stock market and as the greats like to say: the trend is your friend.
Stocks Jump on Global Economic News
“Simplicity is the key to brilliance” – Bruce Lee
Stocks turn in a big rebound as economic data in the US and China along with a positive Portugal bond offering help ease the fears of a European debt crisis. ADP Employment change was better than expected as its payroll survey showed an increase of 93,000 private payroll jobs. ISM manufacturing index edged down from October, but was slightly better than expected at a reading of 56.6. Mid-day a rumor of the US backing the IMF bailout fund for Europe pushed stocks to their highs only to have the rumor to be false. Stocks closed just off the highs of the day, but in line with the highs before the rumor mill picked up. Regardless, today was a positive day for the market as stocks jump pushing the NASDAQ above its April high.
Volume was lower, but there was a volume surge at the end of yesterday’s session skewing volume. Many funds have November year-ends and we cannot rule out some funds adjusting their portfolios heading into their year-ends. However, for much of the day the pace of volume outpaced Tuesday’s session which is a positive sign for the market. Like September 1st the first day of the month has been helpful to stocks and today was no exception.
Market leaders enjoyed today session despite some negative action a few yesterday. However, we stress we must pay attention to our own stocks and make decisions based upon their action. Your holdings are your most important decision making tool you have to gauge the market. Are your stocks going through “normal” corrections? IGTE is one of example of an abnormal correction where the stock took a dive to its 50dma on big volume. The stock was a leader until yesterday and its weakness carried forward into today’s action. If all our holdings acted like IGTE we’d be out of the market, but fortunately it was the only one despite the broad market sell-off. Stick to your stocks.
There are a few certain things in the market and that is you will never be able to OUTRESEARCH the big instiutions in the market. They have vasts amount of resources at their disposal to conduct research, it is best to follow their movement rather than to outdual them. Many traders feel they can outsmart the big boys as well as the market in general. Unfortunately, you will never outsmart the market despite all your efforts Accept the reality of the situation and it will only be then you’ll be able to become a successful trader.
A positive day for the stock market and as the greats like to say: the trend is your friend.
Stocks turn in a big rebound as economic data in the US and China along with a positive Portugal bond offering help ease the fears of a European debt crisis. ADP Employment change was better than expected as its payroll survey showed an increase of 93,000 private payroll jobs. ISM manufacturing index edged down from October, but was slightly better than expected at a reading of 56.6. Mid-day a rumor of the US backing the IMF bailout fund for Europe pushed stocks to their highs only to have the rumor to be false. Stocks closed just off the highs of the day, but in line with the highs before the rumor mill picked up. Regardless, today was a positive day for the market as stocks jump pushing the NASDAQ above its April high.
Volume was lower, but there was a volume surge at the end of yesterday’s session skewing volume. Many funds have November year-ends and we cannot rule out some funds adjusting their portfolios heading into their year-ends. However, for much of the day the pace of volume outpaced Tuesday’s session which is a positive sign for the market. Like September 1st the first day of the month has been helpful to stocks and today was no exception.
Market leaders enjoyed today session despite some negative action a few yesterday. However, we stress we must pay attention to our own stocks and make decisions based upon their action. Your holdings are your most important decision making tool you have to gauge the market. Are your stocks going through “normal” corrections? IGTE is one of example of an abnormal correction where the stock took a dive to its 50dma on big volume. The stock was a leader until yesterday and its weakness carried forward into today’s action. If all our holdings acted like IGTE we’d be out of the market, but fortunately it was the only one despite the broad market sell-off. Stick to your stocks.
There are a few certain things in the market and that is you will never be able to OUTRESEARCH the big instiutions in the market. They have vasts amount of resources at their disposal to conduct research, it is best to follow their movement rather than to outdual them. Many traders feel they can outsmart the big boys as well as the market in general. Unfortunately, you will never outsmart the market despite all your efforts Accept the reality of the situation and it will only be then you’ll be able to become a successful trader.
A positive day for the stock market and as the greats like to say: the trend is your friend.
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