Online Stock Trading | Market moves higher despite record number of Bears

Market moves higher despite record number of Bears


Filed Under Market Commentary |

Thursday’s action saw stocks rocket in higher trade. This is despite AAII Bear
index hitting a 52 week high of 54.98% and AAIIbull hitting 52 week low. The
population in bears have signficantly grown in the past weeks leading to a
silver lining to this decline. It could be over.

Russell 2k led the charge up more than 3.54% followed by: S&P400 3.2%, S&P600
3.12%, Nasdaq up 2.79%…

Volume was considerably light compared to the volume on the downside…although
not a major negative to the day but something to consider. Volume on the NYSE
rose 1.3% while the Nasdaq rose 7%. We couldn’t muster up a 2 billion share
trading day for a such explosive move in stocks.

CANSLIM stocks are only 50% active and lack of huge upside volume leads me to
believe that this will be another failed rally attempt. We do not have a great
probablity of making money on the long side.

Just a reminder Market Commentary will be limited tonight through next week.

Enjoy.

MktSpec

Last 5 posts in Market Commentary

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Comments

4 Responses to “Market moves higher despite record number of Bears”

  1. Y.Y. on June 16th, 2006 6:02 am

    you failed to mention up/down volume was more then 20-1 positive
    thoughts?
    thnx

  2. Y.Y. on June 16th, 2006 8:17 am

    i am unable to post on IP when i hit the website a message comes up saying that my account is waiting validation or has been disabled
    tried registering again same thing happened i dont know whats up with that

  3. Lafayette on June 16th, 2006 9:19 am

    CANSLIM stocks are only 50% active - Interesting. Obviously an indication of quality and you cant expect a rally to be sustained without stocks with good fundamentals.

    Can you access historical records? like how many were active during e.g 08/17/04

  4. Market Speculator on June 16th, 2006 11:35 am

    YY

    Unfortunately 1 day of adv/dec jumping 20 to 1 means only one thing…it was one day. I like to see young, growing companies leading a charge…CANSLIM stocks are only 50% active…

    Lafayette…back in March there were 100% active CANSLIM stocks…just as we hit the 5th distribution day that number dropped signficantly…I don’t have historical numbers but I am looking to maybe building a small database and storing this number.

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