Online Stock Trading | Third Distribution day for the NASDAQ as the Stock Market loses steam ahead of inflation data

Third Distribution day for the NASDAQ as the Stock Market loses steam ahead of inflation data


Filed Under Market Commentary |

Volume certainly was running hot this morning. The Dow Jones Industrial average did all its can today to keep the market above the water. Throughout the day the only bright spot was a private equity group was willing to purchase Dailmer Chrysler. Selling gripped Wall Street much of the afternoon as volume continued to run hot. Stocks ended the day lower, but the S&P 500 was able to escape a distribution day.

It was obvious that the large caps, the Dow Jones continues to lead this market. This is not a terrible thing, but with all the private equity deals, mergers and acquisitions the temptation to bid up stocks with potential to make a deal is feeding greed. More than likely this will continue, but with tomorrow’s CPI report anything is possible.

The 3rd distribution day on the NASDAQ does have me a bit more on the cautious side. Although we’ve pushed through prior highs preceeding the initial distribution days. Even though we can discount these days, we can not ignore the continued selling pressure. I think it is still ok to go long here. Although, I would keep a tight cut loss strategy.

More to come with the CPI data. Bloomberg survey pins the YoY CPI numbers at 2.6% which is .6% above the FOMC comfort level. I don’t see a surprise coming, although possible the PPI really hasn’t shown any surprises as of late so my thought would be this CPI number would come inline with estimates.

Aloha and happy trading,
Market Speculator

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

Leave a Reply