One New Long Position And No New Short Positions For Friday’s Stock Market Session
March 31, 2011 | Comments Off
No New Long Or Short Positions For Wednesday’s Stock Market Session
March 30, 2011 | Comments Off
No New Long Or Short Positions For Wednesday’s Stock Market Session
March 29, 2011 | Comments Off
Stocks Advance in Lighter Trade from Oversold Conditions
March 28, 2011 | Comments Off
US Dollar Index hits new lows
Gains were plentiful, but stocks finished off their highs as volume finished light. Volume was below average across the board and despite Friday’s options expiration volume was considerably lower. Without volume today’s action was not a follow-through day even with all the price gains. Remember, last week we had seen the market dive lower on the fears from Japan. Sentiment took a dive and the market was oversold. Today’s rise, on Meltup Monday is not a surprise, but if we want to have this market go higher we need to see a powerful move and today was not it.
Today’s move cleared any short-term oversold conditions there might have been. Thursday and Friday’s action was not inspiring and today’s was no different. If volume had been above the 50 day moving average we may have a different outlook on the market. One big mistake is if we do follow-through over the next few days thinking you missed out on a big move. We’ll have plenty of time to make up any ground on the market if this market is to continue higher. Do not try and chase the market simply because you feel like you are going to be left behind.
One New Long Position And No New Short Positions For Monday’s Stock Market Session
March 27, 2011 | Comments Off
A Dead Cat Bounce in Progress; Volume Slides as Stocks Rise
March 26, 2011 | Comments Off
Traders saw stocks rise today on the back of extremely oversold conditions and better than expected economic data. We have been under some serious pressure, but the market has been on quite a tear since the beginning of September 2010. Today’s bounce was quite weak with volume coming in well under yesterday’s levels showing institutions were not behind today’s move. At this point, a quick resolution to the current market situation is not in the cards. The market is under serious pressure and will take time to resolve. This bounce can last much longer than you can expect, it is best to stay in cash.
At Big Wave Trading we are interested in helping our members and not trying to constantly trade. There are times when sitting in cash and waiting out the storm. Many services out there will continue to offer up long ideas when the probabilities of these ideas working are slim to none. Buying the dip is even worse, no one KNOWS for sure if a stock will come back. It is best to put the odds in your favor rather than hope for a stock to move higher.
A Dead Cat Bounce in Progress; Volume Slides as Stocks Rise
March 25, 2011 | Comments Off
Traders saw stocks rise today on the back of extremely oversold conditions and better than expected economic data. We have been under some serious pressure, but the market has been on quite a tear since the beginning of September 2010. Today’s bounce was quite weak with volume coming in well under yesterday’s levels showing institutions were not behind today’s move. At this point, a quick resolution to the current market situation is not in the cards. The market is under serious pressure and will take time to resolve. This bounce can last much longer than you can expect, it is best to stay in cash.
At Big Wave Trading we are interested in helping our members and not trying to constantly trade. There are times when sitting in cash and waiting out the storm. Many services out there will continue to offer up long ideas when the probabilities of these ideas working are slim to none. Buying the dip is even worse, no one KNOWS for sure if a stock will come back. It is best to put the odds in your favor rather than hope for a stock to move higher.
One New Long Position And No New Short Positions For Friday’s Stock Market Session
March 24, 2011 | Comments Off
AAPL Stock Slumps as Buyers Jump in Taking Stocks Higher Along with Volume
March 23, 2011 | Comments Off
A plunge in new home sales did provide a bit of selling, but buyers found themselves scooping up shares. The huge drop in new home sales should not come as a surprise, there continues to be a glut of homes and until supply is absorbed. Volume rose across the board, but failed to eclipse the 50 day volume moving average. On the positive side there were a few market leaders breaking to the upside. However, we still do not have a confirmed rally and both the S&P 500 and NASDAQ remain below a key level the 50 day moving average. Today was certainly a positive day, but we’ll need to see this market continue constructive action and a follow-through day.
At Today’s low it appeared as if sellers had complete control over the market. Volume had begun to creep higher as sellers piled on, but it wasn’t before long buyers were able to push the NASDAQ back to the open. The intraday rally wasn’t as powerful, meaning volume wasn’t overly impressive as I would have liked, but still a positive development for this attempted rally. Continue to stay patient, there is no need to RUSH back into the market. If we do get a follow-through day, we’ll be able to take advantage of fresh breakouts because we locked in gains and stayed in cash.
Media Focuses on Mergers as Stocks Close in the Red
March 22, 2011 | Comments Off
Volume slips across the board
If we do end up getting a follow-through day we’ll look back at today as constructive action. Today was constructive, lower volume on the pullback and price action was not destructive. The market remains in a dicey situation here, as we could go either way. Again, if we are to move higher from here today was a good, not great day. Slight disappoints from the release of House Price Index and Richmond Fed Manufacturing index, but neither did much to sway traders from pushing stocks higher or lower. Outside of the economic releases, the financial media focused on wireless companies and the merger between AT&T and T-Mobile. Ignoring the nonsense from the media; today was just constructive for bulls and frustrating for bears.
The move off the lows has been quite V-ish and it would be prudent for the market to work off the move from the lows. Today was technically day number four of an attempted rally. Remember, the strongest rallies will show a follow-through day between day three and seven. There are certainly excpetions to the rule and we can be lenient and say even a follow-through day on the tenth day is acceptable. However, any move below last Wednesay’s low would kill the current rally attempt. As I stated in last night’s commentary if we do have a follow-through day this week do not worry about missing a portion of the rally. You will be able to make up the difference by concentrating on the market leaders.
