Stocks Pullback from the Highs of the Day but Notch a Day of Good Accumulation
April 30, 2009 | Comments Off
By Market Speculator
Once again late day action tempered gains from earlier in the session. Aside from the SWINE flu panic the notorious FOMC released their rate decision at 2:15pm EST. Leading up to the release stocks were showing steady gains and volume was running hot. Leading stocks were enjoying the day as well as the market was showing positive signs. Once the FOMC meeting hit it didn’t take long before gains were beginning to be given up. Although the end of day action wasn’t terrible it highlights the timidness in the market. Overall, the day was a day of accumulation and mostly positive just not great.
Small caps are leading the way as they should during the early stages of an uptrend. Both the Russell 2000 and S&P 600 indexes flashed big gains on bigger volume. A very positive sign for the market and its ability to continue to move higher. Although the IBD indexes are lagging/inline with the major indexes they were able to walk away with gains on volume as well. The small caps cannot be ignored, the move on volume is something that is very telling. Institutions’ appetitte for small caps stocks is now obvious and it appears there is more accumulation to come for those stocks.
Live Chat with Market Speculator and Author_Ego TONIGHT!
March 29, 2009 | Comments Off
Chat with me tonight from 9pm-11pm EST. I will post a link once the room is open. You will be able to submit questions you may have about the market.
Looking forward to the chat!
***Thank you for joining our live chat! We had some success! We’ll certainly be doing it again next week. Please make sure you check back in daily for commentary and next Sunday for another session of our live chat.***
Finally! Stocks Were Able to Lift off the Lows, but the Move Lacked Conviction as Volume Slid Across the Board
March 5, 2009 | Comments Off
“Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.” – Ben Franklin
By Market Speculator
The market was faced with “oversold” conditions for over a week and many market pundits were calling for an oversold bounce. However, the market had other ideas as it continued to move lower. Finally, Wednesday’s session stocks were able to gain enough momentum to the upside. Stocks were unable to finish strong and volume slipped on the session suggesting buying conviction simply does not exist. We can certainly move higher but this is hardly the start of something great.
Most Americans are becoming numb to the countless “savior” programs from the Obama Administration that have yet to provide the market with any relief. The more borrowing and the printing of the US Dollar the MORE damage his administration is doing to our economy. Stocks are TELLING us things are not healthy and all policies and packages being spewed from Washington D.C. will do very little and do MUCH harm. Arguing otherwise is quite silly as ultimately the Stock Market is the greatest predictor of future economic activity. It is like arguing with a golf course after you “thought” you should have been able to reach the green from 250 yards out. In this case, theory and reality are not in sync and is exactly what we are seeing with the Obama Administration and the Stock Market.
Obama’s Budget Proposal Frieghtens the Market Squashing Early Morning Stock Gains
February 27, 2009 | Comments Off
by Market Speculator
“A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned – this is the sum of good government.” – Thomas Jefferson
Looking across the blogosphere and media outlets one might have expected a relief rally. Logic and indicators pointed to an oversold market. Thursday’s action began positive, traders were getting behind the idea of we could rally. Obama’s budget proposal was set to be released during the morning hours of the market. During the 2008 Presidential Campaign Obama pledged to reduce the operating budget deficit; traders were expecting to see Obama to adhere to his campaign promise. However, upon the release of the budget the market began to sell off. There were no improvements to the budget deficit, but it was ballooned to a tune of $1.75 TRILLION dollars. In addition to the budget deficit the proposal ATTACKS healthcare providers effectively squashing future profit potential. The market is not to be argued with, it is foreshadowing troubled times its best we pay attention.
In Tuesday’s market wrap I mentioned the Equity Put/Call ratio and how it was signalling complacency. It continues, the equity put/call remains near lows as the market remains near its lows. Alongside the put/call ratio the VIX index is showing how the selling is not sparking any FEAR in the market. Even short term bottoms will have these indicators showing SOME level of fear. Not this time, sellers are complacent and it shows there is high level of hope that this market rallies in the near term. If we are able to lift off the lows it will be a weak move.
Stocks Stage Rebound as Bernanke Insists the United States Banking System is Sound and a Possible Recovery for 2010
February 25, 2009 | Comments Off
Volume jumps as oversold conditions and Ben Bernanke help lift stocks from multi-year lows.
by Market Speculator
It was coming sooner or later, stocks stage a big gain on higher volume. Stocks were able to relieve the massive selling pressure from the prior 6 trading sessions. Bank nationalization and economic fears were set aside for the day as Ben Bernanke hinted at a possible economic rebound in the year 2010. Unfortunately, beaten up stocks and old leaders were amongst the stocks that lead the market higher. Banks and oil stocks, old leaders were the stocks that propped up the market. We are now entering Day #3 of an attempted rally, we’ll see if the market can manage following through.
One of the most interesting market internal is the Equity Put/Call ratio. Monday as we closed on multi-year lows the put/call ratio fell suggesting selling was complacent. Normally, as you hit multi-year lows the put/call ratio should be rising in dramatic fashion. Not so, for this market. It is quite telling that there is a lack of fear when hit multi-year lows and we must be aware of the fact.
Leading Stocks Remain on Shaky Ground as Small Caps Lead the Market Higher on Volume
January 6, 2009 | Comments Off
Housecleaning item: Josh went to the “L” in Lahaina today and left him just enough time to get Bigwavetrading.com updated. Rest assured, Josh is fine and will be back writing commentary.
Stocks were able to shake off Monday’s heavier volume selling by bouncing back higher on higher volume. Price action as of late has been positive while volume has been on the light side. Small caps lead the rally today as the Russell 2000 rose 1.9%. However, leading stocks continue to struggle to catch up to the broader market averages. IBD indexes still show accumulation far below the major averages, suggesting the leadership in the market is not destined to lead to a new bull market. Quite simply, we are moving higher in a bear market.
The most compelling story is the lack of strong leadership in the market. Normally, IBD indexes of leading stocks would be outpacing all broad market averages. New Bull markets show new leadership breaking out on volume and not looking back. However, we are faced with a market where leadership is spotty and old leaders are the ones leading. Stocks who lead that are moving off lows is not the “ideal” leadership you want to see for a sustainable rally. Despite of this fact there are still gains to be had in this market, but it will be quick and one must be able to take profits fast.
Christmas Special
November 28, 2008 | Comments Off
Big Wave Trading is offering 25% off towards the first month or the full year of the Gold and Platinum monthly packages until December 31st using this coupon code: B99A1. Benefit from our perspective and the information available in the forums to help you become a better trader; a professional. We will be also offering a family plan, please email sales@bigwavetrading.com for further details. Get the entire family to become professional traders.
Big Wave Trading wishes everyone a safe and Happy Holiday Season! Merry Christmas!
Cash is King and the Stock Market is Toxic
October 24, 2008 | Comments Off
For those who haven’t been paying attention to Big Wave Trading, we have been advocating anyone who is new to the market or anyone who hasn’t held onto a Monster Stock to be in 100% cash. Many, however, try to pick bottoms and continue to be wiped out. It is going to continue as many are not factoring in the global slowdown and what it’ll mean to overseas economies. Regardless, we have 1 chart when we should have MANY. This market is trash and will remain that way for awhile!
For the haters and the jealous, keep your trash out of here; especially Joey Fontone who told us we were idiots for being short and in cash. Joey said he was long the market, no Joey is swimming under water. Don’t be Joey.
MS
Stock Market Farts; Cash is King
September 22, 2008 | 2 Comments
Today certainly proves why cash is king and why it will continue to be king until we get a new bull market. For those who jumped on the bandwagon on Friday are now under water and are hurting from today’s sell off. This kind of trading, this type of market should be avoided by all those who do not have at least 5 years worth of successful trading under their belt. It is useless to try to day trade to only burn and churn your account. The government can not help and will not be able to curb this mess, it will only prolong it.
Cash is king, cash is king. Patience is the number one trait everyone must exercise, our members are surviving this market because they are in cash. We are avoiding this mess and making some gains and prepared for a new bull market. It may be months or years away but we are prepared for a new bull market. How can you be prepared when you are churning and burning your account in oblivion.
Enjoy
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
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