Deja Vu All Over Again As The Fed Makes The Market Dance Before Settling Near Unchanged
June 29, 2007 | Leave a Comment
There is a major fire on Maui and has been causing a lot of problems for local residents. The ensuing traffic problem has cut into my day and I do not have time to talk about the market on a day that gave us so little to talk about.
Do you see the final figures? That is why I do not think you are missing anything by me not making comments here tonight. Pay attention to the longs analysis tonight and reread the previous five post on this ‘daily market analysis’ to review exactly where we stand. Because, we definitely did not change any of that today. The same pattern exist today as it did when the week began. Nothing has changed.
Aloha and I will see you in the chat room!
Wednesday Was A Classic Example Of Why You Don’t Short Indexes In Intermediate And Long-Term Uptrends; Stocks Rally On Slightly Higher Volume
June 28, 2007 | Leave a Comment
Stocks showed why it is never smart to short a market until after it has clearly topped. This market is in a choppy trading environment right now and still has an upside bias to it. Therefore, unless you are long, you should only be on the sidelines. Shorting is not the right game yet.
But, I still see a lot of market traders shorting the rise today and see some smart commentators doing the same thing. This is the perfect wall-of-worry that stocks need to keep climbing. The day’s effort was even more impressive considering stocks rallied all the way from negative to positive territory, closing at session highs. Read more
Another Intraday Rally Turns Into Losses; Very Choppy Market Requires Patience
June 26, 2007 | Leave a Comment
Weak consumer confidence numbers and even more bad news from the housing market at first didn’t seem to phase the market too much. But as the day went on, more subprime fears from BSC caused stocks to reverse an intraday rally, for the second day in a row, despite oil falling to $67.77..
The SP 600 led the way lower with a .5% loss, the NYSE and the SP 500 fell .3%, and the DJIA and Nasdaq fell .1%. The Nasdaq lost ground for the third day in a row. Leading stocks kept up with the broader market as the IBD 100 fell .5%. There was nothing real serious in this index, but some leading stocks are showing some cracks. Read more
Subprime Worries Hit Stock Indexes As A Nasty Reversal Kills The Intraday Rally
June 26, 2007 | Leave a Comment
An ugly reversal hit stock indexes today, after more worries over the BSC subprime hedge-fund investments came to light. The selling was broad and hit everything in its path. The SP 600 led the way lower by .7%, the Nasdaq dropped .5%, the SP 500 lost .3%, and the DJIA lost .1%. Theses losses though they don’t seem that bad overall are indeed bad when put in the context of earlier gains.
The IBD 100 even did something it hasn’t done in a while: lead the market lower. The IBD 100 lost .8% as leading stocks finally got hit with some selling. However, honestly, it wasn’t that bad as most are still holding their 50 day moving averages or key support. However, some indexes have now violated their 50 day moving averages and that officially puts them into mixed trends, with longer-term trends up and short-term trends now down in the SP 500, SP-600, and the NYSE. Read more
Stocks End The Week Full Of Red; NYSE And SP 500 Barely Close Below Their 50 Day Moving Averages
June 24, 2007 | Leave a Comment
A slow but constant selloff hit stocks on a rebalancing day for the Russell indexes, as stocks closed near their session lows, closing lower for the first Friday in sixteen sessions. The losses came despite the debut of private-equity firm Blackstone Group. At the close the DJIA led the way lower with a 1.4% loss, the SP 500 took a 1.3% haircut, the NYSE and Nasdaq lost 1.1%, and the SP 600 held up the best only losing .9%. The blame on the losses were contributed to the subprime problems announced by BSC. Read more
Stocks End The Week Full Of Red; NYSE And SP 500 Barely Close Below Their 50 Day Moving Averages
June 23, 2007 | Leave a Comment
A slow but constant selloff hit stocks on a rebalancing day for the Russell indexes, as stocks closed near their session lows, closing lower for the first Friday in sixteen sessions. The losses came despite the debut of private-equity firm Blackstone Group. At the close the DJIA led the way lower with a 1.4% loss, the SP 500 took a 1.3% haircut, the NYSE and Nasdaq lost 1.1%, and the SP 600 held up the best only losing .9%. The blame on the losses were contributed to the subprime problems announced by BSC.
Holding up, along with the small caps, leading stocks in the form of the IBD 100 also lost only .9%. This continues a trend of this index outperforming to the upside and holding up better on the selloffs over the broad market. If this index was leading to the downside on these selloffs, I would be more worried. Instead it looks like normal choppy summer action.
Volume finished over 30% higher on the NYSE and the Nasdaq, due to the Russell rebalance. The key to today’s trading was knowing the facts of the intraday volume action. Volume was trending lower all day long, signaling that institutions were not dumping stocks, until the last hour of the day. That is when volume exploded. But it wasn’t due to selling by big funds. It was due to mutual funds having to reposition their index funds for the stocks that are entering and exiting the Russell index. Therefore, the higher volume with the losses do not signal a distribution day. Investors Business Daily confirms my thinking on this subject.
Stocks Rally On Mixed Volume; SOX Index Hits 52-Week Highs
June 22, 2007 | Leave a Comment
It was, once again, another day of stocks rolling over the perma-top callers as a noon rally helped stocks rally till the close where the indexes end near their HOD. Thanks to the Philadelphia Fed Reserves manufacturing activity in the mid-Atlantic region climbing the highest since April 2005, stocks managed to produce strong gains. The Nasdaq led the way with a .7% gain, the NYSE and SP 500 rose .6%, the DJIA gained .4%, and the SP 600 rallied .3%.
The most obvious bright spot, today, came from leading stocks and technology stocks. The IBD 100 outperformed the broad market, once again, with a 1.3% gain. The Philadelphia Semiconductor index gained 3%, hitting a brand new 52-week high. Not to be forgotten, the Nasdaq 100 put in a strong showing, thanks to some strong computer related stocks, with a 1% gain. Read more
A Nasty Afternoon Reversal Sends Stocks Lower, On Heavier Volume; All Indexes Still Above Their 50 DMA
June 21, 2007 | Leave a Comment
That sound you heard today was the sound of my face hitting the keyboard after seeing that my favorite setup from the past two weeks got crushed. That was the omen that clearly told me it wasn’t going to be a good day. Little did I know that it would be an omen for the market. Stocks went from a steady consolidation into a nasty selloff around 1PM EST and did not stop until the closing bell.
At the end of the day, the SP 500 fell 1.4%, the SP 600 fell 1.3%, the DJIA fell 1.1%, and the Nasdaq fell 1%. Leading stocks, in the form of the IBD 85-85 index, did as well as the broad market, losing 1.3%. The good news is that this index did not lead to the downside and most components of this index actually held up very well and had normal pullbacks. Read more
Stocks Barely Move, Once Again, But Still Finish Higher; Leading Stocks Keep Leading
June 20, 2007 | 1 Comment
Stocks spent another boring day drifting around the unchanged area. However, this time, the bias was to the upside, with the SP 600 up .3%, the SP 500 and DJIA up .2%, and the Nasdaq up .01%.
Despite the very boring action by the indexes, there was some exciting action, once again, with leading stocks. The IBD 100 gained .8%, leading the general market for the fifth straight session. This is the action that tells us that the market is in a very bullish phase and that we should remain long until we get a severe reversal. Read more
Stocks Basically Close Flat, With The SP 500 And DJIA Losing .2%, On Much Lower Volume
June 19, 2007 | Leave a Comment
Nothing has changed since Friday, besides a surge in oil prices. I would rather have you focus on my analysis of my recent longs. If you want to know the current situation of the market, make sure to read ‘the big picture’ in IBD and reread my daily market analysis post from Friday.
If you are upset that there is not a new post here, I apologize. I feel it doesn’t do either me or you a service to basically just make up random stuff to explain a market that doesn’t need to be explained because it did NOTHING.
Aloha and I will see you in the chat room!!
-
Recent Posts
- Stocks Finish off the Lows as Volume Drops
- Big Wave Trading Portfolio Update
- NASDAQ Closes off its Highs as Volume Slides, but Above Average
- Facebook $FB Files for an IPO as a late day sell-off takes down the S&P 500
- January Closes with a Whimper; AMZN Disappoints After Releasing Earnings
