Online Stock Trading | Nasdaq reverses course ends higher as the S&P 600 leads the way

Nasdaq reverses course ends higher as the S&P 600 leads the way


Filed Under Market Commentary |

The Nasdaq staged an intra-day reversal closing on its high of the day. Leading the way, the S&P 600 lead stocks higher ending the day .3%. Bullish undertoes still remain, the intraday reversal was quite impressive and the put/call ratio remains too high. Bearish bets continue to be placed, the put/call ratio stayed above 1.1 after 10:30am EST today. It is quite possible, given the fact this is the 2nd longest bull run without a correction since 1929 people are calling for a top. I continue to wait for the market to give us a signal, so far we have not accumulated enough distribution days to warrant a change in course.

I want to bring your attention to QID and why trying to pick a top is a fools game. Take a look at the chart, notice how it could not hold its 50dma. If you bought at the beg of Jan. you are down 8%. Does it pay to pick a top? Absolutely not, the market needs to flash 5 days of distribution for us to consider the fall.

The market is on an extended run, 2nd longest since 1929. Remember, this stat is just like an overbought/oversold situation. It can go longer, just because it is the 2nd doesn’t mean it can’t be the first. What we do with this info is that when we get the flashes of Distribution Days we then can start selling our laggards, take profits in our leaders. But, without any distribution this helpful info remains in your backpocket and not on the counter. Keep it stored for when we need it.

Feel free to post questions via my email or comments.

Happy Trading,
Market Speculator

marketspeculator@gmail.com

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

One Response to “Nasdaq reverses course ends higher as the S&P 600 leads the way”

  1. DeMerchant on February 22nd, 2007 9:11 am

    Nice to have you back MS! Hope you enjoyed your vacation

Leave a Reply