Friday, October 1, 2010

State of the Stock Market - 10/1/10

We had another somewhat bearish day today on Wall Street, as for the second day in a row, stocks opened higher but could not add to or maintain those gains and closed in the bottom half of their intraday range.  Volume looks to be lower today.

Technically, the market continues to hold above its 9 day moving average and as long as it does, you need to give the benefit of the doubt to the bulls.   There are basically two possibilities happening right now in terms of this market - we are either simply consolidating the huge run-up or we are slowly topping with stocks being distributed underneath the surface.   I do see some toppy action in leading stocks (NFLX is a prime example from today) but until the market overall breaks down, I don't think you can make any moves.  Anticipating can get you into trouble.   Let's just see what the market wants to do next week - it will tell us.

I made one small trade at the end of the session today, entering IDSA at $15.55.   I have been watching this stock for a long while now and posted in many times on the blog, but not being able to trade intraday, I missed the breakout Wednesday.   We'll see where it goes from here but it can move fast with its low float and strong fundamentals.  

Have a good weekend - there isn't much else to say for today.   I'll be back this weekend with a video and some setups on both sides of the market - right now, you need to be prepared for the next move, whichever way it goes.   Hopefully we can find some more winners like NANO, REXX, CGNX, and SYNT (all highlighted in last week's video).   Take care and enjoy the next few days.

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