Stocks Finish Higher Across The Board But Suffer A Late-Day Selloff; Lower Volume Shows Institutions Are Not Interested

March 9, 2007

My girlfriends parents arrived on Maui, today, so I spent all day with the family. Therefore, I was not around at all after the closing bell.

However, I have reviewed my charts and can honestly say that nothing has changed. The gap up this morning and steady drift all day gave way to a selloff sometime after 2pm EST. That was a pretty nasty selloff and that has now happened for the third day in a row. Combine that with the lower volume and you have another technical negative. This bounce should see some volume if it is going to have any staying power.

Tomorrow is the first day we can have a follow through. We are looking for the markets to rally 1.7% on higher volume either Friday or sometime in the next seven to ten days. If we get a distro day or we undercut the lows, this rally can be called off.

Also, if you look, I only had one long. And if you are a gold member you will notice the “stocks on radar screen” has a very small amount of stocks on it. This would not be the case if this was a proper bottom. There are very few SGIC TESOF LPSN INXI charts out there. The pretty colorful green charts are not there yet.

Sorry for the lack of writing. But I have to make a good impression on the family. Everything will be back to normal this weekend. I will have a full Friday market analysis. Also if you keep checking back, I will have the analysis of the longs and shorts updated sometime in the future. Probably tomorrow morning.

Aloha and I will see you in the chat room.

Posted by Joshua Hayes | Filed Under Market Commentary