Check out My New Entry at Trading Goddess’ Blog
Posted on May 12, 2008
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I have just posted a new entry at the lovely Trading Goddess’ Blog. I am posted there weekly highlighting a quality growth stock. I will be posting the charts here along with others I have collected over the weekend! One to check out is OTEX. OTEX appears to be coiling and pulling back for another run to new high territory.
Q Chart Review
Posted on May 11, 2008
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Qchart is a stock trading software platform that allowing traders to visit the streaming of global financial data and charts in real time right at their desktop. It is fast than its contemporaneis but often leads to crashing and loss of data. QCharts proprietary server technology that allows high compression of data allowing the program […]
Stocks Finish the Week Lower, Volume Mixed
Posted on May 11, 2008
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Crude oil once again stole the media headlines away from anything that is meaningful to someone like me. All you see now is how Crude Oil is sky high and how it will destroy this economy. The media does a tremendous job of instilling fear into its viewers. This shows, the latest CNN poll has 80% of Americans thinking we are in a recession. The only issue is GDP growth hasn’t seen back to back quarters of negative growth. Let alone GDP growth hasn’t been negative since the recession in ‘01. Although max fear should be in the market, brought out by pure price and volume action we haven’t seen a tremendous amount of distribution in this market.
Rallies fail when Institutional players sell, period. At the moment although they are not buying stocks in large quantities they have yet to sell them off. The lack of either places us, market players into a precarious position. Many are now trying to anticipate a move to the downside. Many over at Real Money.com even blogger Chris Perruna are calling for a large decline. James “Rev Shark” Deporre is calling for a turn for March lows. I am still not seeing the large amount of distribution to really sound the alarm for further downside. Remember, never short a dull market.
Crude Oil, Spreading Fear Throughout Wall Street
Posted on May 9, 2008
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As Crude touched $125 overnight many are fearful that these high oil prices will destroy the stock market. So far, these high oil prices have only produced 1 distribution day in the past week. It seems that the elephants continue to stay on the sidelines of this market. They are neither buying nor selling. The ole saying; “Never Short a Dull Market” is so true here. This market is simply bumping up against resistance, until we breakdown on higher volume I continue to see this market higher. It has not proven me wrong yet.
I would still exercise caution if you are going long. I would not short this market at all, its far too dangerous to do so. Short interest remains at 5 year highs, although sentiment on Wall Street may be slightly bullish, their actions are telling a different story. In addition, Main Street believes we are in a recession more fuel to the upside fire!
DOW, S&P, NAS CLOSE HIGHER BUT VOLUME LACKING, UNTIL WE SEE BIG VOLUME THIS RALLY IS SUSPECT
Posted on May 8, 2008
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Today was pretty much a lackluster day for the markets. The good thing is the Dow, S&P, and Nas were able to close higher. The bad thing is that volume was extremely low. Not only was it lower than yesterday, it was lower than the 50 dva. This is basically a market trendng higher on low volume. This can only last for so long and unless the smart money starts coming in most likely this rally will retreat.
Today the NYSE short interest ratio made another all time high of 12.94. This means it will take almost 13 days for all the shorts to cover at the average daily volume on the NYSE. The market is still going up so it is not wise to be short. The trend is your friend and those going against it are going to get squeezed if all the mutual funds that are sitting on cash start coming into the market. As long as stocks keep going up I will be long, however this is not the time to be fully invested on margin. We are at some serious resistance as we close in on the 200 dma and we must clear this hurdle if we are to go any higher.
New Post over at Big Wave Trading.NET
Posted on May 7, 2008
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I have posted a new article here. It amazes me how bearish Main Street is on the United States of America. It should come to no surprise to many of you. The Main Street media continues to hammer how awful things are as they have aligned themselves with Liberal Thinking. Liberal policies like the ones that would like to be implemented today are the same ones that took down the Roman Empire.
The selling today doesn’t look all that bad when you consider volume. NYSE looks like its volume will come in lower at the moment with the NASDAQ coming in a bit higher. Let the fear continue to filter into the market.
Markets Shrug of $123 Oil, Reverse Higher on Heavier Volume
Posted on May 7, 2008
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The bull market in crude continues to provide fear for this market. Stocks sold off much of the morning where the NASDAQ corrected .8%. Volume was tracking higher much of the day, but as the day worn on stocks got stronger. In the face of $123, which have most thinking this market is about to crash stocks continue to push higher on higher volume. A tremendous sign of accumulation and not too mention a diminished risk of more lows. Regardless of your opinions are or political views this market wants to move higher.
Continue to search for companies with great earning and sales growth. These stocks will be the ones that will move the fastest in this market. Two stocks that come to mind are HOGS and CDS. Both have tremendous earnings power and their charts are beginning to set up. Four stocks I own have just done 20/4 type moves (20% in 4 weeks) and we know by the case studies done by IBD we must continue to hold these stocks for a minimum of 8 weeks. The four are: FEED, VISN, PWRD, VIT.
DOW, NAS AND S&P ALL CLOSE NEAR HOD REVERSING INTRADAY LOSSES
Posted on May 6, 2008
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The major indexes started off today with what looked to be a rough start but all were able to close near their HOD reversing earlier losses. To top it off, volume was heavier than the day before. While the Dow and S&P continue to show weak volume with both below the 50 dma, the Nas continues to show signs of strengh closing above the 50 dma. This means that big money is pouring in to these stocks and if this turns into a bull market we will find the leaders in this index.
Other signs of strength include new highs outnumbering new lows by a convincing margin. This is what we like to see, stocks making gains with increased volume, very bullish. Another thing to take into account is the growing pessism over the economy. Everywhere you go people are talking recession. The crowd is not always wrong. You want to be with the crowd during a trend, but the crowd is usually wrong at turning points. Everyone jumped on the recession bandwagon a few months ago and those that were able to get off have been making some money, while those that don’t follow the major indexes and pay attention to price action and volume are hurting. The NYSE short interest ratio is at an all time high of 12.82. This means it will take almost a full 13 days for all the shorts to cover. The higher this market goes the more they add to their short positions. If these guys start getting squeezed we are going
to make significant gains as they start running all over each other as they try to cover their short positions.
Consolidation Continues on Lower Volume
Posted on May 6, 2008
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A nice day of consolidation as stocks take another breathier. Two big news stories for the day did push stocks down as Crude hit another high and MSFT dropped its bid for YHOO. Both stories, on the outside would have seemed to be large negatives for the stock market. However, stocks slide lower on lower volume. A sign that the big institutions were not doing much of the selling. Our lower volume down days continue to be the theme, but we still need powerful days where price and volume are insync. Yesterday’s action was nice to see and I believe we continue April’s rally.
There are still many market pundits out there who continue to be bearish on this market. Real Money, Rev Shark in particular continue to let market opinions slide into their commentary. The fact is we have a market with volume higher on up days and lower on down. We have very little meaningful distribution in the market at this point. Big Institutional investors have just started to operate on the long side. We aren’t in the all-in moment, but it the action is certainly starting to set up like it will happen soon.
MAJOR INDEXES LOOK LIKE THEY SHOULD, WATCH FOR A RALLY
Posted on May 5, 2008
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The Dow and S&P finished lower today but look at the volume, both lower compared to friday’s levels. The Nas also finished lower but on above average volume. Given the huge gains the Nas has made this is not something to worry about. Besides, the leaders are still breaking out even during today’s down day. This means the smart money is moving their cash to new leaders.
The NYSE short interest ratio is extremely high and when and if all these shorts start covering we will see some serious moves.
