NOT SO BULLISH TODAY, BUT OVERALL TREND IS UP AND YOU DON’T WANT TO FIGHT THE TREND
Posted on May 20, 2008
Filed Under Profitable Trader |
The Dow, Naz and S&P started off strong this morning but then as the day wore on gave back their gains as all three indexes closed near their LOD. The good news is that volume was lower across the board helping to maintain the healthy gains made last week. The only question I have now is where is the freaking volume? The market has definetly rebounded and with all the beautiful charts that are popping up you have to ask yourself how long this can last on such low volume.
We are seeing some strong leadership among the energy stocks as nothing seems to keep oil from closing higher. I posted ANR back in February and now am up over 70%. I have already closed some of my position as the chart is now getting parabolic and could come back down in a hurry. 8 of the 10 groups with the highest percentage of stocks at a new high are oil stocks. If you are one of those people that are buying financials because you think they are cheap and missing out on the monster gains this market is offering you better rethink your strategy.
As the markets take off the NYSE short interest ratio in now at an all time high of 13.46. This means that it will take 13 days to cover all the shorts out there at the average daily volume of the NYSE. How much more pain can they take before they finally say they have had enough?. It’s hard for me to understand this. I guess with the price of oil, commodities, and gas going up mixed with worries of recession and the credit crisis people feel this is just a bear market rally and keep shorting this market. Isn’t the trend your friend? Why are you fighting it? For now I will sit back on my gains and as long as stocks continue to make new 52 week highs and show great techincals and fundmentals I will buy them.
Comments
Leave a Reply
