Stocks Continue To Drift Around On Low Volume With A Slight Downtrending Bias
August 30, 2008 | Leave a Comment
There isn’t much I have to say this Labor Day except God bless everyone on the Gulf Coast. I am very happy it was downgraded along the way. ONCE AGAIN, the media hypes it like everything else. I am very happy the damage did not occur like Katrina and think it was a CLASS ACT of the RNC to turn its convention into a fund raiser. That is the way to do it!
Back to business, in this low volume market I have made all the key comments I can make the whole week long. The main thing to remember is that the trend is down folks. This is not a market coming from a long-term uptrend or an intermediate uptrend. There has been clear heavier selling compared to accumulation but at least we do have medical stocks looking good. It is hard to go long or short a low volume market and it is pointless as your chances of being whipsawed.
There are very few CLEAN and CLEAR uptrends or downtrends where the stock breaks down at key resistance or stocks bounce at key support. It remains a very random trading arena and unless you are daytrading and even if you are daytrading you need to remember you can be wiped out on one big block order in this market. You can see how quickly stocks fall apart by looking at any insurance or bank stock and you saw how DELL acted Friday. If GOOG, MSFT, BIDU, or any other high-priced stocks start breaking down this market could get ugly. I don’t like how some of these stocks have come back up to old highs on EXTREMELY low volume. This gives them up to the perfect opportunity for real sellers to come out and sell on the retail mark-up.
No Market Commentary Tonight–Market Wrap Video Is Updated For Gold/Platinum Members
August 28, 2008 | Leave a Comment
I am picking up a friend from the airport, running errands, and going out to eat tonight. This will not allow me enough time to write commentary.
However, if you are a gold or platinum subscriber you can go watch the 8 minute long market-wrap video on the forums or listed in the chat room. If you are are not a gold/plat subscriber you can go to youtube and do a search for the market-wrap videos as they are being shown on there. The quality is 25% of what the members get but at least you can learn where the market is at and the stocks I am interested in, if you are not a subscriber.
Have a great Thursday evening and I will be back to a normal schedule tomorrow and will have everything updated like I do 99% of the time.
ALOHA and thank you for being so kind and understanding!!! It’s not like the market is doing anything spectacular on high volume. 
Resistance Levels and Volume; Pay Attention!
August 28, 2008 | Leave a Comment
The markets are bumping up against major moving averages; NASDAQ bumping up against its 200dma at the moment. What will be important piece to watch is if the index can retake that average with volume. We can’t stop there, it must maintain that average with increasing volume. The NYSE is now approaching its 50dma, but recently volume has been a disappointment. It is still far below its 200dma, again we need volume to support moves and we have yet to see this. We need to see much improvement as far as price and volume are concerned.
Market Speculator
Stock Indexes Put In Some Decent Gains But Do You Notice The Weakness Intraday And Inability To Close At Or Near The HOD?
August 27, 2008 | 1 Comment
Stocks put in a good day due to good Durable Goods numbers but I want to bring to the attention of newer investors something that is happening recently on the up days.
Do you notice that a lot not (not a ton) of days where the indexes go higher it does not close at or near the HOD? This in a downtrending is not good. Even in our current sideways market the up days show more intraday weakness near the highs than intraday weakness during the down days. Now while this is nothing to scare you since you already have PLENTY of reasons to being heavily invested in cash. It is just a hint that when a real trend starts again-that we can finally make some real good money again-that the trend will be down.
The leading stocks right now still continue to be medical and while that is good for those solely invested in medical stocks. It is still not a full group leadership by many industry groups. So while I personally have been going long medical stocks and have many medical stocks on my watchlist because it looks like (on my weekly charts) that medical stocks could put in a nice run here (just look at THOR) and I want to have at least 10% of my money invested. But I have learned that even though something looks good today, even in medical, in a bear market profits can be wiped out for no reason in an instant. So for some that are as experienced as me and can see all the same medical stocks that I list in the forums as stocks that are “possible future longs” and you can see currently a few high quality medical stocks that I want to buy off the 50 DMA or a breakout from a long base so to increase my odds of having a winning stock, you can increase your percentage of holdings in your medical stocks.
Another Day Of Active Headlines But A Dead Day For The Indexes
August 26, 2008 | Leave a Comment
If today proves that headlines don’t mean anything in the short or long-term of the market. I don’t know what would make you believe that news stories are just ways for journalist to describe what is happening. After waking up and going over the news stories of the morning I expected the market to be up big or down big as a lot of action was going on out there.
Of course, when I go to take a look at the US Bourses it became clear that the headlines did little to drive the market anywhere. That should help people realize that it is not the news that drives the market but the market of buyers and sellers that drive the market.
One of the for surest things I thought I would see today with all the active headlines was at least heavy volume. Proving that supply and demand and what institutional funds think is more important even volume remained lower. So basically what I saw today was a very noisy day that seemed to even try to put a positive spin on things so the market can rally higher.
A Whole Lot Of NOthing To Talk About
August 25, 2008 | Leave a Comment
Usually on a day that sees all the indexes fall 200 points there is a ton to talk about. But the fact that volume was extremely low and that I have been talking about this recent volume failing there was not a whole lot of anything new that happened today.
I think the oddest development was that volume was so low today. I know we have had a lot of low volume days but to have such a wide and broad selloff where so many stocks got hit by low volume was quite weird. The low volume breakdowns make it very hard to go short a market that could be coming up to a selloff on heavier volume. By the time the heavy volume comes into the selloff most of the stocks will probably will be too extended from a safe short pattern.
So for now cash continues to be my old faithful. I mean when you go long strong stocks like HGR and you immediately get hit with that kind of reversal there becomes know question why being long is so dangerous. There is one long that starts with the letter X that is doing well for me but overall one stock out of 8,000 that looks HOT! is not a good sign for a long-term rally. Especially when the SP 500, NYSE, DJIA are all under the 50 DMA and the Nassy is below the downtrending 200 DMA.
Stop Trading!
August 24, 2008 | 3 Comments
On a Sunday morning I am just quickly reviewing some charts prior to my son getting up and it is amazing to me the lack of anything appetizing. It also is reminding me that if you are new to this market you should be 100% on the sidelines. Too often, “newbies” jump into the market at the wrong time and this time is certainly wrong. Here at Big Wave Trading our Gold Members have access to 100s of articles and postings from professional traders who are willing to teach and grow you as a trader. The ones that will be successful are the ones that are reading our Big Wave Trading forums, watching Joshua’s new videos and simple allowing the information to settle in. If you want to be successful, Stop Trading and pick up a Gold Membership and begin to open the wealth of opportunity this website will provide you.
Cash is king and learning is your top priority!
Joshua Hayes Live!
August 24, 2008 | Comments Off
Joshua is now recording videos!!!
This new feature for Gold and Platinum members will allow them to follow along with Josh as he covers various topics: Overall Market, Stocks, Past Big Winners, How to Scan and more. The enormous learning potential for Gold and Platinum members has now been lifted to off the charts. Make sure you sign up today to get your first look at this amazing new feature.
For a sample video click here.
Aloha
Stocks End The Week The Way They Started: Without Volume And Flat
August 23, 2008 | 1 Comment
This was one of the lamest weeks all year as stock market indexes barely went anywhere. Not only that I have to admit that not much happened that would have me excited about the upcoming week. The only exciting moment in my stock market life is that we have the power to create screenshot videos and show you exactly what I am looking at as we go along. That can only help you become a better trader.
My biggest problem right now is getting inexperienced investors to stop trading this trendless market that is doing its best to drive a lot of traders nuts. The smartest traders realize that most breakouts in market environments like this fail immediately. But there is still a handful of egotistical traders that believe they can be the 10% that can beat the overall market when it is in a position not to be beat. That is about the only thing that is driving me nuts right now because I know when it is time to not be doing anything and that time has reached us.
There are some people that are for sure there are great stocks out there and that we just can’t find them. Those folks are wrong and the fact is that the only stocks that are doing well right now are stocks that do well in bear market environments. That is medical stocks, consumer durable stocks, and other safety stocks like soap and other products that sell well even in a market that is going nowhere.
Starting To Get Worried But Not Really
August 22, 2008 | Leave a Comment
I hope that my internal feelings are a contrarian but as every day that goes along that I continue to scan my charts and see nothing that looks like it wants to rally or make higher highs in a proper fashion I get a little more nervous that I begin to think that this bear market is going to go on a lot longer than I would like it to.
I am not sure where I heard the saying, or if I even ever heard the saying and have come up with it on my own by studying the market, but if a bear market does not last six months or less it usually last two years or longer. The problem now is the it is clearly past six months since the top in November but at the same time there are absolutely zero charts that are ought there with beautiful patterns that make me feel comfortable that we have a real rally coming along any time soon.
Instead what I see are ugly rallies in medical and other defensive stocks that do not give investors a safe chance to get in or are in chart patterns that are so V-shaped that I am not sure people should be getting involved anyways. However, it doesn’t matter what I say, newbies constantly think they are smarter than this market. So I’ll watch them bottom fish FRE and FNM till they are broke. If you loved it at 60…you’ll love it at…3.
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