Wednesday, February 9, 2011

State of the Stock Market - 2/9/11 - "Healthy Action"

We saw a healthy consolidation day today on Wall Street, as stocks finally took a breather from their recent seven-day run and finished with small losses.   The intraday action was choppy and overall looks just like rest.   A few more days exactly like today would be excellent for the overall health of this market.   Volume was heavier however so today does count as a distribution day although it didn't "feel" like one to me.

I remained in cash today but was stopped out of one of my two positions.   I entered HSFT on Monday at $32.56, but it saw little follow-through and reversed lower today, stopping me out at $32.15 for a 1.3% loss.   My other position was up over 5% today but to be honest didn't breakout really the way I had hoped it would so we'll see what happens there.   My stop is in place and I should get out pretty close to break even at worse. 

On the individual stock front, once again we saw some stocks act very well today like OCZ and TNAV, but others that I was watching acted poorly.   FMCN, QLIK, FTEK, GGAL, MTL, BZH, HSFT, and TSLA showed me enough today that I no longer have them on my buy candidate list.   It remains a stock picker's market.

Overall, I will stick by my premise that we're in a tough market where some things are working and some things aren't, and because of that, I would remain small and quick in terms of position size and timing.   A little pullback here into the short-term moving averages would likely set up some stocks as potential buys but as of now, there remain only a few that look promising on a nightly basis.   My signal remains on a buy, but it is a weak one so be careful and cautious.   Good luck Thursday.


Dr Van Nostrand said...

that OCZ you pointed out looks good for higher prices if mkt doesn't fall apart on us

Mac said...

Are you the same dr von nostrand that's a dermatologist from the clinic in Belgium? How is George's boss's mole looking these days?

Nice reference there.

OCZ does look like it could move higher - you just don't know because half of setups like this reverse right now and half continue higher.

Jeremy said...

It is indeed a tricky and frustrating market, at least to me. Many of the breakouts I bought failed, so decided to sit on hands for now

JP said...

I bought several gap-ups and pocket pivots off the 10-day in the last two weeks, all IBD 95+ composite score stocks, and they've all been doing well so far. I may very well have gotten lucky with my picks, though.