Tuesday, September 28, 2010

State of the Stock Market - 9/29/10

Another bullish day on Wall Street today, as stocks saw some early follow-through to yesterday's selling but quickly reversed that and ended up positive.   A bottom was put in today a little after 10:00, and stocks worked their way higher throughout the day in a steady manner.   The bounceback was impressive, with the Nasdaq climbing almost forty points off of its morning low and the S&P moving almost twenty points off its low.   Volume appears higher. 

Technically, the market continues to act in a bullish manner, even with the divergences out there.   Today was another example of the importance of using a 9 or 10 day moving average on your charts - both major indices bounced right off those levels this morning.  The markets are still below Friday's highs but that could be just a matter of time given today's action.   We're not really overbought short-term either so a breakout could work again here.   The Russell 2000 and financials continue to underperform drastically as neither has broken through their resistance levels yet, but it hasn't mattered much to the other two indices - maybe it won't ever matter.

S&P 500, Nasdaq
Russell 2000 and XLF

I didn't make any trades today but hopefully some of you were able to catch some of the move in CGNX today.  This was highlighted in the weekend video and was up a nice 16% on higher guidance.   This is one of those plays that not being around a computer intraday makes almost impossible to play.   I did put a limit order in on BIDU last night to short at $108, but that wasn't filled (although it did gap and reverse like I wrote about last night). 

Instead of writing much more, I figured I would just share a few charts to wrap up here that are worth watching.   I have others (KNDI, FVE, VPG, AHD) but they are very, very thin.  The action today was bullish so it looks like the market wants to keep moving higher - no need to fight it.   Good luck Wednesday.

HTHT, OPNT
MERU, ZUMZ
PTRY, HLF
CMED, ALGN
Charts from Telechart, Courtesy of Worden Brothers, Inc.

1 comment:

faipoon said...

Out of the list. I like MERU. It is forming a undercut of 20 EMA. Low risk entry.