Thursday, July 16, 2009

State of the Market - 7/16/09

This will be an early and short post today as we have family coming over in a few minutes. It was another good day for the bulls today, as although the market started very slow and was quite boring for the first half of the day, the indices all broke out to the upside around 2:00 and ran higher from there into the close. There was some speculation that positive comments from Noriel Roubini and negative comments about the health plan trying to be forced through Washington caused the pop. Regardless, it looks like it will be another strong day for the bulls. Volume looks like it will be lower across the board, especially on the S&P.

Technically, it looks like we're getting extended here in the short-term, what with the Nasdaq putting in its seventh consecutive positive close. That may not mean as much however in the midst of the earnings we are seeing right now. Tonight, GOOG and IBM report and if the market likes what they say, then we'll probably be up again tomorrow. If they don't, then we are setup to have a big pullback but again, who knows what the earnings will be? It is simply a guessing game. In terms of levels to watch, the Nasdaq is at the moment at new highs for the year as 1879 was broken late in the session. This is certainly the leading index right now and bears the most watching. Support if we pullback should come in around 1815-1820. The S&P is looking at 956 as resistance and should see 911-913 as support.

That's about it for now - again it really does all depend on the earnings right now. UFPI was a nice earnings play today - it was only up about 5% if I remember correctly last night so I didn't think much of it. I will continue to watch for these however and if I go long, it will be with these type of plays. I am working on a video as well for these type of plays this weekend. Take care and good luck.

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