Thursday, February 10, 2011

State of the Stock Market - 2/10/11 - "Flat Market, But Excellent Action"

We saw a very nice session today on Wall Street - the market may have closed flat, but the intraday action was bullish as stocks fought their way back from a very poor open on the back of a weak earnings release from Cisco.  Short-term support was tested (and held) early on and from there, stocks moved up (the rest of the morning) and sideways (the rest of the afternoon) to close with only the slightest of gains.  Volume appears to be lighter on the S&P but heavier on the Nasdaq.  

I have been expecting a pullback the past few days, but I do like the way the bulls stepped up to the plate early in today's session.   Right now, both the Russell and the Nasdaq appear to be forming little bull flags, and although from a longer-term time frame I would really like to see a meaningful pullback/correction at some point, today's action makes it seem like the market does want to move higher from here.   Hopefully that's how it plays out. 

One other factor that has me more bullish than I have been early in the week is that a quick look at my scans showed many more stocks that stood out as potentially nice setups.   I actually entered two long positions at the end of the session today (shared one of those on Twitter) and am looking at several others.   I am still holding my previous long position although it was down almost 5% today and I don't know if it will play out how I was hoping.  My main reason for not being overly bullish this week was the way individual stocks were acting.   If these setups I am seeing today start working well, then I would obviously get more bullish. 

BRNC
 LDK
 MSPD
 REDF
 SIMG
 TTC
 MMYT
All charts from Telechart, Courtesy of Worden Brothers, Inc.

Good luck Friday - with all of the stuff going on in Egypt, news may drive trading tomorrow and that makes for unpredictable trading, but today was a bullish session and I would lean to seeing higher prices soon.   We'll see if it works out that way.  Take care. 

1 comment:

Dr. Van Nostrand said...

This is the Dr. from the clinic and I like what you've done with those x-rays I mean stock charts....some nice pocket pivots today