Thursday, December 9, 2010

State of the Stock Market - 12/9/10 - "Still Looks Like Consolidation"

Kind of a slow day overall today on Wall Street, as stocks started higher but sold off right from the open.   The selling lasted until lunchtime and from there, stocks basically chopped sideways for the rest of the session.  Both the Nasdaq and S&P came slightly off of their lows and finished with modest gains, but the action still looks like consolidation to me and that is not a bad thing.

Technically, the overall picture remains bullish as no damage has been done to the market following Monday's intraday reversal.  The Russell 2000 in particular looks like it simply just forming a bull flag here. 

Financials have had quite the run and are also overbought, but look like they want to move to new recent highs.   I would not be buying a breakout here as they are very extended, but it is something to watch.   IF these get going, that might give the market a nice boost.  Of course, if the financials rally while gold and silver fall, it might all be a wash.

Charts from, Courtesy of Worden Brothers, Inc.

One interesting event for me today was an email I received from Worden Brothers.   The email let me know that they are coming out with a new, updated version of their awesome Telechart software.   I was able to get a beta copy and will enjoy checking out the new features during my "hiatus" from trading until probably after the new year as I get my accounts worked out.  Here are some of the additions to the new version of Telechart (taken from the email)....

Here are just a few new things about (Gold or Platinum):

Online-access from any computer anywhere (including your personal settings, WatchLists, etc)
Personal WatchLists—now shared across all Worden platforms
Data feeds (US—common, preferred, BB, PS; Canadian; Forex; Mutual Funds; Indexes)
Bar Intervals—Daily and above; Intraday (supplied by BATS)
Indicator Library—huge library; ability to overlay and daisy chain
QuickSort—fastest sorting ever!
WatchList Columns—created by conditions directly from your charts
News/notes window—streaming news, personal notes and notes from the TC community
Drawing Tools—great list of powerful tools including trendlines, Fibonacci, Gann, text and more.
Alerts—trendline, price, condition & reminder
TC Menus—still have EasyScan, PCF’s, Custom Date Sort, etc.
Full Integration with Twitter & Facebook

Completely compatible with Macs!

As I learn more about the release of the new software, I will be sure to let you know, and if you are not using Telechart currently, you don't know what you're missing.   There is always a free 30-day trial for new customers - I think you will find it very helpful to your trading and organization.  

That's it for today - tomorrow might be another slow day into the weekend, but the picture remains bullish overall.   Until we get some heavier volume selling, I don't think that picture is going to change.   Good luck Friday.


Sal M said...

I noticed on my 15 minute 5 day chart, the market looks to be forming a reverse head and shoulders. I know that simply trading off this is not a high probability trade, but it shows how there are dip buyers. Tomorrow should be the day we break the neckline.

Anonymous said...

inverse H&S is a reversal pattern - but there's no downtrend to reverse - just the opposite - so it's not really an inverse H&S "pattern" at all