Monday, November 22, 2010

State of the Stock Market - 11/21/10 - "Typical Holiday Volatility"

A volatile day today on Wall Street, as stocks started the day lower, sold off through lunch, and then bounced back into the close to finish mixed.  The Nasdaq was up while the S&P was slightly lower.   It is certainly good to see stocks bounce off of their earlier lows, but overall the action was choppy and difficult to trade from a swing trading perspective.   I described this in the weekend video and days like today are the main reason I will remain in mostly cash over the next week.  

Thanksgiving week usually has a positive bias, and I would guess we'll see some upside this week.  How much is unknown - I don't know if we'll be challenging new highs anytime soon, but if you're trading, I would focus on that side for this week.  I would keep my time frame short however - the volatility could chop you up if you're not careful.

Good luck Tuesday - given the holiday week, posts might be a little short this week - there isn't that much to talk about.  Hope you understand.  

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