Online Stock Trading | Stocks lead impressive day, but are storm clouds forming?

Stocks lead impressive day, but are storm clouds forming?


Filed Under Market Commentary |

Kind words from Dallas Reserve President Richard Fisher calmed trader’s fears on inflation.  Comments were directed around the strength of the economy lies outside the Housing and Auto sector.  No big surprised, record increases in home prices and refinances only could go on so long.  Like the ‘00 stock market irrational exuberance was mirrored in the housing market.  Investors are beginning to believe housing market is dead and stocks may be the better choice. 
 
Market ended:
 
Dow Jones Industrial        +.6%
Nasdaq Composite           +1.4%
S&P 500                         +.9%
S&P 400                         +1%
S&P 600                         +1.1%
NYSE Composite              +.6%
 
Volume ended higher for Dow Jones, Nasdaq, S&P 500, and NYSE Comp.  However, we’ve had heavy volume action for the past week in the indexes.  I’d like to point out the S&P 500 because it really shows the spike in volume and stalling price action in the market.  How do we prepare for the possibility for a downturn?  Or a rally?  We keep all new buys limited and small.  In addition, we keep tight cut loss strategy in place.  We can not be on margin and we can be fully invested.  Keeping 50% in cash will help us stay away from capital loss and ready to pounce on a rally.
 
Keep positive and I’ll see everyone at Investors Paradise.
 
MktSpec
 
 

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