Tuesday, June 9, 2009

State of the Market - 6/9/09

Another choppy day that took us nowhere on Wall Street today - stocks meandered up and down throughout the day but ended up basically flat except for the Nasdaq, which once again showed relative strength. It got to a new high at 1869 but could not close at a new high, although volume was heavier. The S&P traded in a ten point range for the entire session on slightly lower volume.

Technically, we are still in the consolidation pattern although I don't know if I can say that as much for the Nasdaq. I worry a bit that it may be wedging higher, which is never good, but we'll see. I wish the Nasdaq moved more sideways here like the S&P is doing. 950 is the resistance for that index, with 925-930 acting as support. The consolidation continues to look bullish but I would likely wait until we get a break above or below those levels before making any huge moves.

I did make one trade today - bought RAX at $12.05 and $12.10. It was breaking out to new all-time highs on heavier volume and has good IBD ratings. I figured it was worth a chance here even though the market is still consolidating. A break below $12 would not be good and I will probably keep my stop pretty tight. I saw some bearish or weak breakouts today in stocks I liked like AEPI, SIGA, and TIVO and that gives me a bit more pause here than I had going into the session. However, the flag patterns I showed in the video for the most part continue to form and most look very good still, so I am not that worried.

That's it for today - I know it's a short commentary but there isn't a whole lot to say right now. I've got a train table to put together for my three year old son's birthday tomorrow and a hockey game to watch tonight as my Pens try to force a game seven, so I don't think I'll be back later. Maybe tomorrow morning if I find anything really interesting. Take care.

4 comments:

crashtestdummy2002 said...

Hi Mac,

Just found your blog and it looks great. Can I get your opinion on CNXT, CYTR, LJPC, and ORS.

Thanks.

Mac said...

They are all VERY low priced so typically they would not be stocks I would play. CNXT looks the best out of those, especially if it breaks its 200 day moving average.

crashtestdummy2002 said...

Thanks Mac.

I had CY, ICO, RAX, and AUY on my list also.

All the best with your trading.

Mac said...

I like the base ICO is forming a lot - if it breaks above it, I think it could move a bunch.