Tuesday, March 30, 2010

State of the Market - 3/30/10

I really don't have much to say today as we saw another relatively slow day on Wall Street, as stocks opened higher, fell soon after, but were able to bounce back into the close to finish with small gains but basically flat.   Volume was lower than yesterday, a trend that I think will continue for the rest of this week.  

Friday's lows are still holding so far as support and as long as that happens, the bulls remain firmly in control of this market.   I may bump the support levels to watch up to today's lows (2395 and 1168) just because that is where the trendlines are moving up to, but that's probably just pulling hairs.   The dollar got a bit of support today but oil is approaching resistance again and could perhaps break through this time, so that bears watching.  Most sectors remain bullish overall including the financials, which on Friday looked to be putting in a potential top.   That has failed to materialize so far.

I made one trade today but as been the recent trend it went nowhere and I was stopped out with a small loss.   I went into CAST at $8.19 a bit after the open due to earnings news and an overall bullish chart.   It got up as high as $8.50 soon after my purchase, but fell straight down from there and I was out at $7.98 for a 2.8% loss.   I am doing a great job right now of picking stocks that spike up and then give back absolutely all of their gains and more.   Unfortunately, that's not a good thing.  

I didn't see much moving on my watchlist other than CSIQ but looking at the intraday chart I can almost guarantee I would have been stopped out of that if I entered.   I remain in cash except for a CISG position in my IRA that was not stopped out last week.   I really wish I could be more fully invested but right now individual stocks are not acting well enough to swing trade profitably, at least not for me.   Day traders may be doing OK, but I don't see much out there for swing traders like me. 

Good luck Wednesday - I am expecting more low-volume chop with lots of whipsaws.  Be careful.


positiontrader said...

That's exactly the kind of loss that I let affect me and my trading Mac - when potential gains turn into a loss. I admire you for not letting it affect you.I am just wondering why you didn't move your stop to breakeven like you usually do??

Mac said...

After a while, it doesn't affect you too much. I get ticked off for a second and then just let it go. Since I am not watching it happen live either, there is little I can do.

My stop loss was set right before I shut my quotes off due to work and the way it acted, I really didn't think it would break its morning lows. Breakeven might get me stopped out in my mind, but I didn't think it would break $8, so I set it there. Oh well.