Friday Was A Good Day, Nasdaq And Dow Move Higher On Above Average Volume
Posted on April 20, 2008
Filed Under Profitable Trader |
Friday was probably the best day of the market this year. The major indexes may be poised to break out of their trading ranges and move higher. The Naz and the Dow were able to move higher on volume that was above their 50 dva, the last time they were able to do that was March 20th. Anything that has to do with oil in hot with oil hitting record highs.
The NYSE short interest ratio is at an all time high which is very bullish. Right now it is 10.95 meaning that it will take 11 days for all the shorts to cover. If this starts to happen this market will take off as these beaten shorts will rush to cover. It may be wise to wait fo the first day that it begins to drop as that may be the beginning back to normalcy and the fuel that drives this market higher.
We are already convincingly above the 50 dma. Notice how the slope of the 50 dma is starting to level out and may be ready to turn up. If this happens it is a signal that the intermediate treand is up and we can feel good about the state of the market, especially if we get some more volume on the up days.
Comments
Leave a Reply
