Thursday, January 27, 2011

State of the Stock Market - 1/27/11 - "Action is Certainly Better"

Positive day today for the Nasdaq, flat day for the S&P - that was the story today on Wall Street.  The Nasdaq started its move around 11:00 this morning, based for most of the afternoon before attempting a breakout during the final hour of trading.  This was quickly reversed however as it approached the 2766 levels that coincide with last week's highs, and the Nasdaq did close about 10 points off of its intraday high.   The S&P was a choppy mess.  Volume on both indices looks like it will come in a good bit lower.

I made two entries today based on what the market has shown me the past three sessions and both entries worked out OK so far.  I did attempt to get into CCME last night after-hours but my order was either too late or my limit at $19.89 just didn't hit.   Either way, I had to pay up a bit this morning and entered just a bit higher than $21.   I owned this stock earlier this year and was stopped out during the (brief) correction phase last week, but I felt it was definitely worth going back into today.  So far so good.   My other position was only up about 5% from the open but I knew it would likely make my buy scans tonight so I went into early.   The position I entered last night was flat today and we'll see if it works out.

I have to go because we have a family outing tonight but overall the market has certainly responded well from last week's beatdown.  My signals have reversed and although I do not have a full-out "buy" signal yet, I would definitely lean to that side of the market, and as you can see with my trades, that's what I've done.  I am by no means a "raging bull" here as I don't really see that many setups I like and we are extended a bit, but it is what it is - the market has improved.  If you're looking for a setup or two, here are two to consider for tomorrow.   Good luck. 

Charts from Telechart, Courtesy of Worden Brothers, Inc.

1 comment:

Anonymous said...

hi mac, its mini-me.

the dual evening star on dow daily chart worried me badly. technically, 1 more short squeeze day and then a correction will happen.
in the past few weeks the overbought or top divs (min/hourly) correction lasted no more than average 1.5day. i afraid that the coming correction will over 1.5day (could be as long as 4-5days) as dual-evening-star is a strong bearish signal.

i maintain my dow's at 120xx ~ early121xx by mid feb, however.