Online Stock Trading | The Stock Market welcomes back traders with small gains on increased volume

The Stock Market welcomes back traders with small gains on increased volume


Filed Under Market Commentary |

The market welcomed back vacationing traders the door opening to earnings season.  Alcoa, a Dow Jones Industrial Average component kicked off the season after today’s close.  With no economic news until stocks raced higher from the open.  However, stocks returned to unchanged level by mid-day. 

 

It wasn’t until the end of the day where the indexes began showing some life.  Volume raced higher across the board at the close.  NASDAQ volume rose some 13.8% over Friday while the NYSE volume rose 7%.  It wasn’t a surprise to see volume come in higher after the holiday week but, for the bulls the positive price increase continues to aid to the side of the bulls.


 

On the negative side for the NASDAQ was the Advance/Decline line favoring the decliners by a small margin:  1473 Advancers to 1527 Decliners.  The brighter side, upside volume was higher. 

 

At the CBOE, the Total Put/Call ended at .81 showing the Bears haven’t been placing their normal bearish bets.  The cause is more than likely positive upside surprises.  First quarter earnings saw many upside surprises where earnings estimates were so low that it was quite easy for Companies to beat estimates.  We are seeing this again but Bears are more cautious this time around.  I believe we’ll see them once again push the Total Put/Call ratio above 1.00 in no time.

 

JRJC was a new long this morning.  It closed strong on a surge of volume late in the day.  You like to see this in a holding were it closes on the high of the day with exceptional volume. 

 

Economic news:  Consumer Credit rose to 12.9B in the month of May, trampling the 7.0B survey result.  Last months number was revised from 2.6B to 2.3B.  Tomorrow’s Economic news:  Wholesale Inventories and ABC Consumer Confidence. 

 

This market is still pointing towards higher ground and until we start seeing meaningful distribution and failures at key support will this change my line of thinking.

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