Archive for August, 2009
A Lack Of Buyers and Profit Taking Will Lead To Choppy Trading This Week!
Last week, the market showed signs of tiring. There were many positive developments and prices were not able to move higher. Early last week, the reappointment of Ben Bernanke should have sparked a rally. He has guided us through the most difficult period since the Great Depression. Analysts and politicians have confidence in him and he has proven himself. A change at this fragile stage would have wreaked havoc. New home sales came in better than expected, durable goods orders (helped by commercial aircraft orders) came in much better than predicted and Q2 GDP was unchanged when a decline was forecasted …
Big News Next Week - Be Patient - Wait For Dips!
The market is very resilient and yesterday it reversed early losses. Once again, bears were punished and the market closed near its high on light volume. GDP and initial claims came in as expected and that news was not bad enough to justify the decline. It looked like profit taking was the culprit. The bond auctions this week have gone well and interest rates are low. That is good for equities since it keeps the cost of capital low. Low yields also force investors to look for better potential returns in the stock market. This morning, Intel raised its third-quarter outlook. …
How to Find High Probability Trading Set Ups
How can I find high probability trading set ups?
Light Volume Profit Taking Sets In - Watch Support At SPY 101
A week ago, the market recovered from a nasty decline and as the week progressed it surged to a new high for the year. That rally resulted from decent economic news; short covering and option expiration buy programs. This week, the market feels heavy and it has fallen into a tight range. While traders wait for the next “driver”, the volume has fallen off. Yesterday, durable goods orders came in much better than expected. That improvement was largely due to commercial aircraft orders. Next month, cash for clunkers should provide a big pop to durable goods orders. New home sales were …
Home Sales Spark A Market That Feels Heavy!
This week, the market has been looking for a new catalyst to push it higher. After last week’s big run, the market looks tired and it might be a little ahead of itself. Yesterday, news that Ben Bernanke would be reappointed should have resulted in a big rally and it did not. He has guided us through one of the toughest periods since the Great Depression and a change at the helm would have wreaked havoc on the market. The announcement did not have to be made for many months, but analysts were wondering why they would delay when the decision …