Excellent Late-Day Reversal Sends Stocks Well Off Their Lows, With The Nasdaq Closing Above Its Open; Hard To Call Today A Distribution Day

July 18, 2007

Today’s market action, overall, to me, was very positive. The action that I expected to play out did play out today off the bad earnings from GOOG and INTC last night. The selloff did last longer than I thought it would on an intraday basis but the eventual dip buying did show up, sending stocks well off their lows. Breadth still remained poor throughout the day and new lows beat new highs by an almost 3 to 1 margin which is a reading I have not seen since the start of the February selloff.

The market has gotten very choppy, which is what was expected on my end for the summer. The whacky action following breakouts is not bearish even though it is taking a while for certain stocks and indexes to follow through on their initial moves. The SOX is a good example of that as it gave back most of yesterday’s gains. However, the overall trend of that index looks like more gains are coming.

My portfolio had absolutely NO damage whatsoever today so I can not even begin to look at today’s action as the start of a trend reversal. I am going to have to see more evidence and more weakness in my personal holdings before I can even begin to feel the bears argument.

The other thing that happened that I was looking for was the 14k breakout and reversal by the DJIA. In the end, the charts still say we are going to eclipse that number but the fact that we did reverse it was almost a self-fulfilling prophecy.

Though today was not the greatest day we have seen it was not bad at all. The trend is still up and many stocks are still holding their key support like champions. IBM and EBAY even reported good earnings and both traded up after releasing those earnings. So the bears aren’t getting much follow-through on the early go around.

But that has been the story of the bears for a while now. Kass, Fleck, and Ritzholtz will have to try to keep scaring this market to get it to go down. I guess after a full year and a half of being DEAD wrong doesn’t do it, nothing will. These schmucks however get more of a following than me so it is obvious misery loves company.

Besides that there is not much internally or in the form of stocks that showed up today that offers any new and different kind of insight on this market. So with that I bid you a great night and I will see you in the chat room!

Subscribe To Site: