Friday, January 7, 2011

State of the Stock Market - 1/7/10 - "Bulls Show Up Again"

We saw a lower finish today on Wall Street, but all in all, it was a positive session based on another intraday comeback by the bulls.   The session opened flat, but stocks sold off in the morning, temporarily breaking key support.   During lunchtime, it appeared that the bulls finally might be giving up the reins a bit, but the dip buyers soon came back in and pushed the market up for the rest of the session.   The late push allowed stocks to close well off their lows and in the middle of their intraday range.   Volume was about even on the S&P and slightly lower on the Nasdaq.

Overall, this market continues to be very resilient and although the bulls very well may crack soon, until they do, fighting the move higher is silly.   My signals remain bullish as the market avoided any more distribution this week after Tuesday and continues to hold support.   One of my longs was down 2.5% today, but it held support nicely and my other two longs were up 4% and 2%, which is nice to see on a day like today.   I do wish I was a bit more aggressive earlier in the week, but I'll take what I can get.   I am trying to enter one order after-hours today but my internet has been off and on for the past day so I don't know if I'll get it or not.

I'll be back this weekend with some watchlist candidates for next week.  Until then, take care and enjoy the next few days. 

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