Online Stock Trading | Volume pulls back but so do Stock Indexes

Volume pulls back but so do Stock Indexes


Filed Under Market Commentary |

Stocks started Friday session, day 2 of an attempted rally positive only to end in negative territory. Starting from the gates volume simply was gone. Early vacation for traders? Clearly, big institutions sidestepped Friday’s action and simply went home for the weekend. Again, market is leaning towards the downside and Friday’s action was no different. Stocks will again, fail to rally into a new uptrend…for the following reasons:

  1. Seasonality: Stocks historical do not begin bull runs in the summer
  2. CANSLIM are only 50% active in the market
  3. My watch list shrank signifcantly from 44 stocks down to 24…this after a possiblity of a new rally
  4. S&P 500 and Dow lead the in Day 1 of the attempted rally. S&P 400&600 were no where to be found. I don’t want to see the Large/Mega Cap stocks start a new bull run.
  5. Mr. B&#$*(# and the FED will overshoot with Fed Funds Target rate.
  6. Politics - mid-term elections will come with an onslaught of negativity about the economy from the left
    1. I.E. WORLD IS COMING TO AN END
  7. Yield curve inverted for the 2nd time this year.

I could keep going, what’s the point? At any rate, I’ll let the market decide which way it wants to go. As for now, I am sitting on cash waiting to see new opportunities arrise (watch list) and for a follow-through day confirmation from the market. We can’t sit here and try to dictate what “SHOULD HAPPEN,” but follow where the market is going.

Below you’ll find my watch list for the coming week.

New Watch List for 6.12.06 - We aren’t in a confirmed market rally, no new positions should be taken.


ACGL
AERTA
ARP
BOT
CFR
FAL
FMD
GES
GRMN
HEIA
HSR
KOMG
LDSH
LIFC
MED
NITE
NTRI
PA
PMTI
TWGP
UAPH
WCG
XTXI
ZVXI

Enjoy your weekend!

MktSpec

Last 5 posts in Market Commentary

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Netvouz
  • DZone
  • ThisNext
  • MisterWong
  • Wists
  • Bumpzee
  • StumbleUpon

Comments

Leave a Reply