Stocks Take a Pause as Volume Slides Lower
September 30, 2010 | Comments Off
Stock market leaders continue to act well as the market pulls back
The market took a rest today in front of tomorrow’s GDP report out along with jobless claims figures. Volume ran lower across the board today as stocks digested Tuesday’s gains after the major indexes found support at their 10 day moving average. Once again we saw strong action out of the market leaders. Lower volume suggests institutions weren’t looking to dump stock on the market. Today was a good day of consolidation ahead of important economic figures on Thursday morning.
All the rage on CNBC tomorrow morning will be when the government releases GDP figures as well as jobless claims. Lots of points of views will be highlighted and debated, but there is one view we should pay attention to and that is the market’s reaction. We aren’t taking it minute by minute or even second by second as many traders tend to view the world. Again, we will need the whole picture with market reaction as well as our market leaders.
It may appear redundant to hear about the market leaders, but they really are the key to this market. In late August as the market continued to move lower these leaders were holding up and creating bases. A few were holding their pivot points and exploded higher with the September 1st follow-through day. Since then these leadership group has expanded and we’ve see two more follow-through like days. Ignoring the strength and trying to find reasons for the market to reverse much like Doug Kass and other market pundits will simply leave your portfolio bleeding. Check your opinions at the door and follow the action.
Troubling Economic Data Overlooked as Stocks Advanced on Higher Volume
September 28, 2010 | Comments Off
Stocks stage intraday reversal to close just off the day’s high to notch a day of accumulation
Bulls recaptured the day as early morning selling gave way to late day buying pushing the market to close just below the highs of the day. A mixed housing picture from S&P/Case Shiller Home Price index left many traders worried about their positions as the market began to sell off. But, what kicked off further selling was a negative economic reports out of the Richmond Fed and Consumer Confidence board. The Richmond Fed manufacturing index showed reported a -2 reading while the market was expecting a gain of 6. In addition, consumer confidence reading was well below expectations coming in at 48.5 near February levels. Selling intensified, but was quickly met with buyers as volume swelled. By the end, the market notched a good day of gains with the Russell 2000 index leading the way.
Looking Back, Opinions were Costly as the Market Rallies
September 27, 2010 | Comments Off
Recapping this month has shown Big Wave Trading has been on this move!
This past month has been a stellar one for Big Wave Trading. We quickly identified a newly formed trend and went long. If we were married to an opinion and agreed with many market pundits we would have continued to stay short and would have had our butts handed to us on a silver platter.
From September 1st Commentary:
“I have been pointing out the positive action in leading stocks, while not a guarantee the market will follow-through, but adds to the possibility of one occurring. It was important the market move and move quickly as we were testing last Friday’s lows and when you test a point too often it tends not to be support. Therefore, today’s move was a step in the right direction to find stocks about to make big moves.”
Volume Sags along with Prices; Market Consolidates Recent Gains
September 27, 2010 | Comments Off
Stocks take a step back in lighter trade
Stocks took a step back after Friday’s gains as volume slowed across the board. Late day selling slammed the door on the Bulls face as renewed fears over European’s bank health crept back into the market. There were plenty of market leaders advanced today and leaders overall acting well during the day’s decline. Although the market did creep into positive territory the roll-over did not come on higher volume avoiding a day of distribution. Today was a good pullback, we consolidated last week’ stock market advance quite nicely.
Leaders Remain in Control as the Market Cools Again
September 24, 2010 | Comments Off
Stocks fall in the third straight day, but volume edges lower
A lower than expected European PMI figure sent futures lower prior to the release of the weekly jobless claims. The jobless claim figures have become a barometer for the job market, but the unexpected drop in claims helped fuel fear the early morning selling. Buyers didn’t step up until a surprise to the upside in the Housing market helped fuel the market higher. However, the market couldn’t support the higher prices. By 3:30pm EST the market appeared to heading for a crash but late day buying helped save the market from closing at its lows. Volume fell on the NASDAQ and S&P 500 as the indexes skirted distribution.
Volume ends Mixed as Stocks Slide for the Second Day in a Row
September 22, 2010 | Comments Off
Leaders are mixed as the NASDAQ notches a day of distribution thanks to ADBE stock
ADBE stock and MSFT stock dominated the news headlines as both stocks help drag down the NASDAQ and other technology stocks. The S&P 500 shaved 48 basis points, but volume on the NYSE was lower as the index avoided a day of distribution. However, the NASDAQ could not survive the volume from ADBE as the NASDAQ notched its 2nd day of distribution. ADBE traded more than 80 million more shares than it did on Tuesday accounting for the majority of volume increase on the NASDAQ. Many leaders held up during the session, but a few suffered some bruises. Today showcases why it is wise NOT to chase stocks, but on the whole today’s selling was normal market reaction to the rise in the market since September 1st follow-through day.
AAPL Stock Soars as Technology Stocks Lead the Way
September 21, 2010 | Comments Off
Small Cap Stocks Along with Big Cap Leaders like AAPL stock and BIDU stock lead stocks higher
Big technology stocks lead the market with AAPL stock breaking into new highs. BIDU stock was another big technology stock breaking into new high territory. Another big day of gains for the market as we saw the S&P 500 break above resistance with volume coming in higher on the index than Friday’s inflated from options expiry. This sign of strength does not come often and today proved the market’s strength. The key has been the ability to hang onto your leaders for big gains. We are enjoying this market rally and it appears we have plenty of room to run.
Stocks Fall as Volume Jumps Across the Board
September 21, 2010 | Comments Off
Choppy Reaction to FOMC’s Statement Leads to a Day of Distribution
A dose of positive news from the housing market failed to inspire traders to bid up stocks as housing starts jumped more than 10.5% month over month. Building permits jumped as well showing their maybe some life left in the housing markets. Regardless, stocks ignored the housing data and looked ahead to the Federal Reserve Open Market Committee rate decision. Initial reaction to the statement was positive as stock jumped to the highs of the day with volume supporting the move. However, by three o’clock sellers had taken control of the market sending stocks to a new low on the day. A late day bounce helped ease the pain. The market notched a day of distribution, but for the S&P 500 it is the first day of distribution since the September 1st follow-through day.
Two New Longs and One Add for Monday’s Stock Market
September 20, 2010 | Comments Off
We apologize for the quick post, but Josh’s travels have temporarily mixed things up. Charts will be posted later.
New Longs
IGTE broke out of its base on base pattern but pulled back on light volume, but has found traction at its 50dma a sign of institutional support. The stock is of high quality and sports excellent growth figures. Your cut loss is a a close below the 50dma.
FOE is of high quality like IGTE showing big earnings per growth figures. It too broke above its proper pivot buy, but pulled back. The stock on Friday bounced off its pivot with volume. Cut your loss with a close below the pivot, or if you are experienced you can let the stock have room and cut your loss with a close below the 50dma.
One Add:
Jobless Claims Drop Along With Volume as Stocks End Mixed
September 17, 2010 | Comments Off
ORCL Posts Positive Earnings as the Stock Jumps After Hours
Today was another day of gains in the market with the NASDAQ closing higher for the 10th time in the last 11 sessions. Early going the market was given a dose of good news with Jobless Claim figured showed a claims fell more than expected. However, buyers weren’t excited as the market pulled back in the morning, even with the Dow finding green territory. Volume ran lower throughout the day as sellers didn’t gain much traction. Small caps pulled back and underperformed noticeably, but with volume coming in on the light side it hasn’t become a glaring red flag. While the crowd continues to look for a pull back this market continues marching higher.
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