Friday, September 18, 2009

State of the Market - 9/18/09

Although the overall markets were up slightly today, it seemed to be a pretty non-eventful options expiration day today on Wall Street, as my quote screen was basically flat across the board with only a few exceptions. Volume today looks like it will be close to yesterday's levels but I don't have the final totals.

I really don't have a whole lot new to say today because nothing really changed. My basic thesis is that although we are overbought and in a technical position right above long-term wedging patterns to have a significant pullback, I still think there is just as good a chance (perhaps even a better chance) that this market starts ramping up very soon, possibly forming a blow-off top. The action of the past two days on the daily charts is bullish, with the S&P, Nasdaq, and XLF all forming mini two-day bull flags. This is one reason I will not be surprised at all to see increased buying next week. I continue to watch a few stocks on the long side and if I find any more in my scans, I will put together a video this weekend to share those, although the setup for the videos will be a little different from now on.

Since it is the weekend, I am wrapping this up for now. As I said earlier, not much changed today overall. Take care, enjoy the next two days, and look for a video at some point over the next few days.

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