Friday, November 5, 2010

State of the Stock Market - 11/5/10 - "Bullish Consolidation"

Another positive day today on Wall Street, as stocks gave virtually nothing back from yesterday's super day when they had every opportunity to do so.  Stocks started the day flat as a positive employment report boosted futures from their morning lows, but after trying to move a bit higher early on, stocks pulled back slightly and just basically chopped around for the rest of the session.   The Nasdaq traded in a ten point range all session, and the S&P traded in a six point range.   All in all, a positive session.   Sign me up for three or four just like this next week if you can - that would be a nice setup to allow higher prices as we go from here.

I'll be back this weekend with the normal video along with some setups to watch - we had some real nice movers from last week's video (PUDA - up 35%, CPE - up 15%, CAGC - up 14%, CGNX - up 10%).   Unfortunately, I was not able to get in any of these stocks - I really do need to fine-tune my procedures for trading while away from the market - but I am long four stocks right now after today.  I will add others as I see fit, although I would prefer a few more days of rest before adding any more long positions.   We had a few breakdowns on the list (MMYT, HTHT) but if you played those stocks, hopefully you followed the stop loss advice given on the video - that would have prevented any big loss.

Enjoy the next few days off and get ready for what should be an interesting week.  Take care.

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