Tuesday, October 26, 2010

State of the Stock Market - 10/26/10

It was opposite day today on Wall Street, as stocks did the exact opposite of what they did yesterday.   The day started on a bad note, with stocks slightly gapping lower and sliding further for the first five minutes or so of trading.   The bottom, however, was put it right there, and stocks bounced back from there to almost turn positive by 10:30.   The rest of the session was mainly chop, as stocks moved sideways in a pretty tight consolidation, but did finish near their highs for the day.  Volume looks to be about the same as yesterday. 

Technically, the trend remains up as the 9 day moving average was once again touched and held easily.   I repeat, until this breaks convincingly, there isn't a whole lot to do other than respect the trend and ride it as you can.   I said in the weekend video that unless we break hard, I expect some sideways consolidation and that's basically what we're getting right now.   It's not the best to trade, but there are some areas that can work if you watch closely.   

My powder remains dry and I am waiting until some good earnings setups show up this week before using it.   MIPS was one big mover today that reported last night, but I didn't like the chart going into the report so I passed.   It was up 30% today.   Most of the reports I am waiting for come Thursday, but I will keep my eye out today and tomorrow as well.   In fact, there is one company that just reported that I am debating about entering right now.   I'll let you via Twitter if I pull the trigger.  

That's about it for today.   The market moved a lot the past two days but went nowhere, and I would not be surprised to see that continue for a few more days.   Good luck Wednesday.

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