Stocks Power Up End of the Day
Posted on April 27, 2008
Filed Under Market Speculator |
Friday’s action was a bit dismal until I looked at volume statistics for the day. Volume initially ran hot but declined throughout the day. Stocks were poised to close lower on lighter trade. Not a bad day for consolidation until stocks caught a bid and roared to the highs of the day. A very bullish sign when you can get stocks to rally off the lows like Friday’s action.
I fully expect to see more low volume Monday and Tuesday, I may be wrong but 1st quarter GDP is set to be released followed by a decision from the FOMC later in the day. Most will not want to step in front of the GDP number because it may signal we were/still are in a recession. Quite honestly, I don’t care whether we are in a recession or not because price and volume action will dictate my trading. At the moment, we are currently in a confirmed market rally and price and volume have been to the upside. I simply can not argue with the market right here or make opinions.
It is my opinion GDP will show we weren’t in a recession, but what do I know? My only reason: Inventories. Why 2007 Q4 GDP was so low was the drawdowns in inventories which subtracts from GDP. Regardless, I am not trading based on this. It is unwise to allow your opinions to drive you trading mentality. Success Speculation demands a mind free of opinion and subjectivity. In this case, price and volume is pointed for higher stock prices and I’ll follow that.
We continue to be in unforgiving market, until we get more volume or better known as elephants in the room we can not get too long here. Patience, more money is made waiting than doing!
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