Friday, March 11, 2011

State of the Stock Market - 3/11/11 - "Good and Bad"

We had a good and bad day today on Wall Street depending on how you look at things.   It was good to see the market bounce and not see any immediate follow-through from yesterday's major technical damage.   This is especially true when you consider the awful news coming from Japan with the earthquake last night.   The setup was there for the bears to take this market even lower, and they couldn't do do, at least not yet.   That is a positive.

On the other hand, the bounce we saw wasn't that impressive overall.  As has been the recent trend, volume was much lower today than yesterday's totals, and although the S&P got back above its 50 day moving average, it remains below its short-term moving averages.   The Nasdaq remains well-below its 50 day moving average.   Based on the action, I don't get the sense that today was an important reversal day because there didn't seem to be too much panic this morning, but I could be wrong.   We were quite oversold short-term going into today's session, so a bounce was not that surprising. 

I remain in my two short positions and will see what Monday brings before doing anything else.  I am perfectly aware that this market may run higher from here and kill shorts once again (just because it has so many other times before) but I have to go with what I see for the time being.   If the market does decide to rally, I'll take a small loss, step out of the way, and reassess - no big deal. 

Have a great weekend - if you're looking for something to do, check out the new TC2000 app for Android that was released today.   Jeff at tweeted about this earlier today and after downloading the app and checking it out briefly, I am very impressed.   Those of you that are Telechart users should definitely check it out, and those of you that aren't, it is one more reason to look into the software.   Take care.


Anonymous said...

I think you should have cover your shorts today especially QID. Monday pre-market future markup begins. Europe will bounce up which will lift overnight futures. AAPL may report huge ipad news. Dont be surprised to see future up over 1% on Monday.

Mac said...

We'll see - you may very well be right.