Friday, July 30, 2010

State of the Stock Market - 7/30/10

Another extremely volatile day on Wall Street, as stocks went down, up, back down and made things difficult for most traders out there.  The GDP number started things off on a bad note, and stocks sold off hard off an opening gap down for the first ten minutes of trading, taking out yesterday's lows.  From there, however, dip buyers came in much like yesterday and pushed stocks all the way back to the plus side by 10:45 in a very, very bullish manner.   Stocks paused there however near yesterday's close and then drifted lower and lower throughout lunch and into the afternoon.   A little after 2:00, they started rallying again up to top of their intraday channels and that is where they sit as I write this at 2:45.   If we close in positive territory, it will indeed be a very bullish day.   If we fall into the close and end up near the lows, then I honestly have no clue what to expect of next week.   Either way, I will write more this weekend as I have to leave now for a family function - hence the early post.

I made a few more trades today.  First, I was stopped out of ZQK from yesterday at $4.40, giving me a quick loss there.  When the bulls reversed things, I entered two more stocks - IGTE at $17.30 and CSR at $5.76.   Both looked like nice pullback plays given the morning reversal.   This gave me a total of four longs and I became fully invested in my main account for the first time in a long while.   I have not made any trades in my IRA and may wait further for either an earnings play to emerge or for the overall picture to become more clear.

Good luck the rest of today - hopefully we can get a strong push into the close and have this so-far bullish pullback end and start a decent move higher.   Have a great weekend and we'll see you back here Sunday.

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