Online Stock Trading | Market follows through on huge price gain

Market follows through on huge price gain


Filed Under Market Commentary |

Bernanke and company boost stock prices by removing language that would suggest a tightening monetary strategy. Stocks were dead throughout the entire day until 2:15pm EST when the decision was made.

NASDAQ 2455.92 +47.71 (1.98%)
S&P 500 1435.04 +24.10 (1.71%)
DIJA 12447.52 +159.42 (1.30%)

The most successful follow-throughs occur AT LEAST 2-4 months after a top. This most recent follow through comes a bit over 3 weeks. Very short for a follow through to occur. NASDAQ and S&P 500 retook their 50dma on volume, signficiant but appealing? No!

So what do we have now? We now can start counting distribution days. I am still advocated a large cash position. “Them be choppy waters out there.” We need a deeper pull-back, bear market here to clean up these charts. As of right now risk premium from my stand point is very high. Leaders aren’t nearing buy points but are nearing tops.

Aloha and Happy Trading
MS

marketspeculator@gmail.com

Last 5 posts in Market Commentary

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