Friday, August 6, 2010

State of the Stock Market - 8/6/10

A volatile day today on Wall Street, as stocks started the day very poorly thanks to a very poor jobs number (thank heavens we had that wonderful stimulus package to help get us back on track - I can't wait for stimulus #2).   Stocks bounced right off the opening gap day, but then rolled right back over and sold off rather hard for the first few hours of trading, hitting a bottom a little after 11:00.   From there, they moved sideways through lunch into the afternoon.  Around 3:00, a rally into the close commenced, allowing the market to finish well off of its lows.   Overall, a bullish day but also a volatile one in which lots of people likely got chopped to bits. 

Technically, the market bounced off of its 20 day moving averages today and have established a steep uptrend line from the lows in late June.   As long as today's lows hold, you must still look long if you are insistent on playing this market.   However, I made no trades this week after Monday's session and to be honest, I don't think I missed a whole lot.   I still see a lot of setups that are not working the way they should and that continues to have me hesitant.   AONE was the prime example of a failed breakout this week - looked really good Wednesday but now, who knows?   I will have a better graps of things this weekend when I go through my scans, and I will share what I find then.   I have no reason to be bearish here and I am not - I am just stating facts that although the market is holding up very well, it has not been easy to play small-cap growth stocks over the past few weeks.   It is frustrating. 

Have a good weekend - I got an email today that one of the sponsors for this site is running a promotion for four free online trading seminars - no credit card required.   Might be worth a look over the next few days - click here for more information and to sign up.   Take care and enjoy the next few days.

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