Low Volume Rally Runs Right Into Major Resistance: THE FED!; Stocks Selloff On Higher Volume Possibly Ending This Recent Rally
December 11, 2007 | Leave a Comment
What more can you say but WOW!? There is no doubt in my mind that this was one of the worst intraday selloffs I have ever seen in my trading life. Now, I am sure I probably have seen one this nasty before. In fact, in all honesty, I know I have. But it hasn’t been since at least 2000-2002. Since then, I know we have never seen anything like this so late in a day destroying the market like this.
Since I focus on individual charts more than I do to any of the talking heads on the web or TV, I can manage to fight through all the confusion. However, this has been a market that has definitely not helped me out at all. My charts are basically worthless to me, right now. Sadly, this year has seen nothing but disappointments left and right by HOT HOT HOT stocks with great charts. Even when those chart patterns had powerful fundamentals driving the price higher it seemed after the perfect buy signal was given that it would fail.
Recently, despite the low volume, the market has produced some nice charts, making some (including myself) believe that this rally could last longer than expected. However, today put an end to all of that thought. Most hot stocks also felt the wrath of the market today as everything I owned seemed to pullback.
SP 500 And Nasdaq Pullback In A Calm Fashion On Lower Volume, While The DJIA And IBD Indexes Continue To Rally; Where Is The Volume And Where Are The New Leading Stocks?
December 7, 2007 | 5 Comments
Overall, it was a pretty choppy and inconsistent day on Friday, but it was still a good day when we take it and consider that we continue to hold well in the face of all the bad news from the subprime area of the economy.
I heard many complain that we did not finish higher today on the Nasdaq. I, however, disagree with them and find it more bullish that we finished a tad lower. That shows me that we are consolidating the gains, since the November 28th follow-through day from the IBD indexes, quite well. If we would have sold off today on heavier volume, then I wouldn’t consider the days action bullish. But the fact the we sold off a little and the volume was lower is exactly how you want to see the market pullback after adding on some solid gains.
Don’t forget that the DJIA finished higher, even though volume was extremely low, and that the IBD 100 and IBD 85-85 indexes finished higher. The big caps and leading stocks seemed to hold up well on a day of profit taking. So the people that were not happy with the Nasdaq do not have to look too far to find some other positives in the market.
Stock Indexes Close Lower On Higher Volume, Producing The First Distribution Day Since The Follow-Through On Wednesday; Is This Rally Done Already?
March 29, 2007 | Leave a Comment
Stocks turned tail Wednesday and for the second day in a row dip-buyers did not show up as stocks moved lower, with an intraday roller-coaster ride mid-day after a speech by Ben to a Congressional panel, closing near the lows of the day. Things got off to a bad start, after the February durable good came out below expectations of a 3.5% gain with an actual 2.5% gain. That might have been bad but the ex-transportation numbers hitting YOY growth lows not seen since 2003 and capital goods coming in 1.2% lower and at lows not seen since 2004 were probably what really gave traders a scare. On top of that, add oil hitting six-month highs of $68 after-hours and settling in at $64.08 after weekly inventories were announced falling by 900k, comments by Ben that inflation is still a worry, and the tensions between Britain and Iran over the naval incident and you have plenty of reasons for stocks to go lower; and lower they went. Read more
The Bad News From The Housing Sector Just Doesn’t Stop; Stocks End Lower But On Lower Volume
March 27, 2007 | Leave a Comment
It was a day of bad news all around, as rising oil prices, more bad news from the housing market, and a drop in consumer confidence rocked stocks early. After the early morning rock, stocks basically spent the rest of the day boring everyone as all of the action was before the bell.
Before the bell, the Conference Board consumer confidence index fell to 107.2 in March, from a downward revised 111.2 in February. This was the first decline in five month and below estimates, after the index hit a 5 1/2 year high in February. Then we had the bad news from LEN’s Q1 report. The stock said this quarter EPS came in 72% lower and withdrew 2007 earnings estimates. The combination of these two news events, with oil making gains helped send all stock indexes lower. The bad news continued, after-hours, for the homebuilders, but we will get to that later.
At the close, the Nasdaq and SP 600 led to the downside with .7% declines, the SP 500, the DJIA and NYSE lost .6%, and the SP 400 held up the best with only a .5% loss. Leading stocks kept pace with the market, with the IBD 100 falling .7%. Even with the leading stocks keeping pace with the Nassy to the downside, there still was virtually no selling in the stocks that make up this current index.
Another Dead-Cat Lower Volume Rally Give Stocks A Green Close; I Don’t Trust This Market
March 12, 2007 | Leave a Comment
Stocks kept on bouncing, on Monday, as a flurry of merger and acquisition news and lower oil helped stocks finish higher, despite further bad news from the subprime loan sector. Before the bell, news that DG was being bought out by a private equity group, UNH was buying SIE, and SGP was buying AKZOY hit the market. However, the NYSE halted trading on NEW as NEW said it will not be able to pay back some HUGE loans (NEW fell 48% overnight). This had much more of a morning impact on stocks than any of the merger news, as the market opened flat. But as the day went on traders covered some shorts helping start a low volume rally that was met with a little bit of selling at the end. Oil falling below $60 to $58.91, for the first time in three weeks, was the reason given for the markets afternoon rally. However, the lower volume afternoon rally with a last hour pullback (AGAIN) leaves much to the imagination. Read more
Wild And Choppy Intraday Action Ends With Most Indexes Red; Day Two Of Rally Attempt
March 8, 2007 | Leave a Comment
It was a choppy day today (no surprise here) as stocks opened flat, then fell, the rallied, and then took a last hour nosedive. When it was over, all indexes ended in the red closing near the LOD, except the MidCap 400 index. There was not much in economic news to move the market. The Fed Beige Book showed modest growth in the economy, with 3 out of 12 districts slowing down. This lack of econ news kept the market in a benign trading range that led to a last hour selloff that killed a possible green close. Read more
Bottom Guessers Continue To Lose Money As Stocks Continue To Selloff; Charts Are Getting Very UGLY UGLY UGLY (Not A Normal Pullback)
March 5, 2007 | Leave a Comment
Stock market indexes took traders on a wild and crazy wild, on Monday, as stocks gapped lower due to fears out of Asia, the subprime mortgage market, and other various reasons. By the middle of the day stocks managed to make it to the green but were then slammed in the final hour on heavy selling sending the averages right back to where they started. Read more
Stocks End The Week With More Losses, Capping Off Their Worst Week In Years
March 4, 2007 | 2 Comments
A falling dollar to a rising yen and euro and concerns of the subprime mortgage market helped weigh on stocks on Friday. However, after the damage Tuesday and the weak bounce on Wednesday and Thursday, further selling was to be expected. The most disturbing part of Friday’s selloff was the fact that almost all the indexes closed at their LOD. Read more
Blue Chips Get Hit; Nasdaq Stages Another Bullish Intraday Reversal, Closing At Its HOD
February 22, 2007 | Leave a Comment
Stock indexes gapped lower this morning as CPI data came in higher than expected. The CPI rose .2% as core prices had their biggest jump since June. That along with Fed minutes showing that the Fed is still targeting inflation was enough to send all the indexes lower. However, showing just how strong this market is, stocks crawled off their lows of the day and the Nasdaq even closed at its HOD. Read more
Stocks Fall Across The Board On Lower Volume; Nasdaq Finds Support At The 50 DMA
February 13, 2007 | Leave a Comment
For the third straight day, stocks fell, despite a couple of big mergers and acquisitions. Even weakness in oil and natural gas could not help the market make headway. The Saudi Arabia oil minister said OPEC may not implement new production cuts at the next meeting. Oil managed a 3.5% drop on that news and natural gas fell .60 cents, putting pressure on oil stocks. XOM COP HAL and SLB felt the pressure and helped lead the AMEX oil indexes lower by 1%. Read more
