A Boring Session Ends With Stock Market Indexes Selling Off On Lower Volume; Why Do People Trust The Government More Than Themselves (I’ll Answer That In My Video)?

March 24, 2009

I will not be doing commentary today as I have busted my tail off for my subscribers in the paid area. If you want to know my outlook on the market check out the longs and shorts section, along with my videos, if you are a subscriber. If you are just visiting, make sure you watch my past two or three videos on YouTube, so you know where I stand on this market.

Chris M. (Market Speculator) stock market commentary for BigWaveTrading.com is below the YouTube video.

FREE YOUTUBE VIDEO:

If you haven’t taken a look at Josh’s free video on YouTube it is a must see. Onto the market.

Stocks were able to pull back on lower volume, but we’ve seen this story before. Lower volume pullbacks, but those pullbacks are higher percentage pullbacks. Consolidation is what you’d like to see stocks do after a massive move higher. Typically, if the consolidation avoids distribution the consolidation is more than likely will be successful. What we have here is a LARGE percentage drop on lower volume suggesting those who were buying on the way up WANTED OUT. At any rate, if the market can show signs of accumulation despite the large percentage drops we may be able to sustain the move off the lows.

Stocks market leadership is VERY IMPORTANT to any bull market move. From the lows, the stocks who have led us higher have been the bank stocks. Not what we want to see as new leaders. There have been a few other stocks that have cropped up for us, but hardly ENOUGH leadership to bring us into a new bull market. If this market can consolidate in a more desirable fashion we may just get leadership, but don’t hold your breathe.

Our priority is not to be Bulls or Bears, but to be on the RIGHT SIDE. Jesse Livermore was a master at this craft of being on the RIGHT SIDE rather what he felt the market should do. Often times we are seeing too many people forcing their view on the market via their trades and fail. At the moment we are neither major bulls nor bears as we have both Longs and Shorts. If we find more long candidates then certainly we’ll take those and become more bullish. On the flip side, if more shorts show up we’ll short. It is this discipline that makes us money consistently and avoids MAJOR losses. Let the charts dictate how you trade, not what you believe should happen in the market.

Good day to you all and best of luck.

Market Speculator

Posted by Joshua Hayes | Filed Under Market Commentary