Monday, December 27, 2010

State of the Market - 12/17/10 - "Snoozer"

Not unexpectedly, we saw a slow and sleepy session today on Wall Street.   With the mix of holiday trading along with a blizzard that crippled the East coast, volume came in very low today.   The action intraday was bullish as stocks started the day with a gap lower but fought back for the rest of the session to finish just slightly higher.   The Russell, Nasdaq, and S&P all tested their 9 day moving averages successfully once again today and as I've said for a while now, as long as the market is above this mark, there is simply no reason to be bearish.

There were a few individual movers today in some small caps - these are the type of stocks to focus on during slow market periods because they can still draw some attention and get pushed higher in thin conditions.   REE is a name that has been basing for a while now and had a heavy volume move up today through its 50 day moving average, putting in a pocket pivot.   This is certainly one to watch.   SHZ (shared here last night) is another stock that was up early today and didn't give much back - this could see follow-through soon from the momo players and is also worth watching.   AGM was also up over 5% but volume was light.
 Stocks from, Courtesy of Worden Brothers, Inc.

If you're trading, good luck Tuesday.   I would stay small and stay nimble as the rest of the week will likely be similar to today - some pockets of action in individual stocks, but overall not much movement on the indices.   Take care.

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