Online Stock Trading | Stocks gain as volume escapes the country

Stocks gain as volume escapes the country


Filed Under Market Commentary |

Market ended like this today:

Dow 12,159.68 +26.28 (0.22%)
Nasdaq 2,378.70 +6.96 (0.29%)
S&P 500 1,392.28 +5.11 (0.37%)
Russell 2k 783.61 +7.93 (1.02%)
S&P 400 828.44 +5.63 (0.68%)
S&P 600 401.57 +3.93 (0.99%)

Ending higher is not always something to hang your hat one. Volume was significantly lower across the board. Extreme lack of buying interest on the part of the institutional “big” boys. Today is Day 2 as the Nasdaq undercut the most recent lows yesterday, marking this rally attempt #2!

The main point here is price and volume action. But, looking at some other secondary (really secondary) market stats. New highs did out pace new lows today bucking the trend as of late. I would not read too much into this as VOLUME was real light. Do not take this as a bullish sign. If new Highs outpace new lows, you WANTit on HIGH volume!!! Remember, everything at face value may always be perceived to be more valuable to those who aren’t wise.

I am still not high on any rally attempt here unless we start seeing some accumulation in this market. So far, there has not been ANY! After listening to people tell me that CNBC is just carting so called “EXPERTS” calling for buying all the dips I am convinced that this buying is a result of traders believing this crap!

Keep your eyes open and don’t believe hype, believe in price and volume action!

Happy Trading,
MS

marketspeculator@gmail.com

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Comments

4 Responses to “Stocks gain as volume escapes the country”

  1. z-stock on March 16th, 2007 1:30 am

    MARKET S
    I’m clueless as to when the market bottoms. I have an untested theory.

    The market bottoms when GDX re tests $32 (OCT lows). It’s a real stretch, but doesn’t everything bottom at a about the same time?

    Gdx top this cycle is $40 I believe. If this is so, It’s only a 50% retracement, for gold stocks. NEM is the main culprit. It’s 07/08 eps estimates have been lowered 22% / 25% the last 5 months, yet it hasn’t shown up in the stock price, my opinion.
    Let’s just see if GDX fails at $40 first. If GDX does fail at $40, My red flags will start to pop up.
    z-stock

  2. Market Speculator on March 16th, 2007 7:49 am

    Are you talking a bottom in Gold or the stock market?

    Markets have been under severe distribution as of late. I wouldn’t think a bottom to this thing is close.

    But, you could be right about the $32 level.

  3. z-stock on March 16th, 2007 4:57 pm

    Market S
    I don’t think DIA bottom is close, either. I’ve had so much success at trading GDX stocks over the years, GDX or XLE bottom usually coincides with a DIA bottom. I’ve seen two tops, DIA may 06… DIA feb 07.

    May 06 XLE had a strong short sell signal.

    FEB 07 GDX double topped for an easy short signal. (GDX PUTS only thing that saved my account, that day, thankfully)

    However, GDX / XLE July 06 bottom, Signal was there, but murky. This year it’s different. Everyone, yourself included of course, have these amazing blogs, which has made my decisions terrifically more easy.

  4. Market Speculator on March 16th, 2007 6:42 pm

    Hey thanks z-stock!

    That is an excellent observation, I would go back and produce those charts so you can see how good your observation really is.

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