Online Stock Trading | NASDAQ follows through confirming a new confirmed stock market rally

NASDAQ follows through confirming a new confirmed stock market rally


Filed Under Market Commentary |

Stocks jolted higher with volume confirming the rally off fresh lows set on Aug. 16th.  Traders are attributing today’s trade to the hope Mr. Bernanke and the FOMC will cut the target rate.  The move also could have been attributed to a positive GDP report set to be released Thursday morning at 830am EST.  Bottom line:  the market followed-through on the rally off the lows, we must respect it and trade accordingly.

Wednesday’s trade didn’t come without its negatives.  New lows continued to outpace new highs significantly, not a typical sign of strength.  The CBOE total put/call ratio sat at .93 at the end of the day.  Where did all the bears go?  Here are the new High/Low numbers:

NYSE New Highs:  12
NYSE New Lows:  46
NASDAQ New Highs:  20
NASDAQ New Lows:  61

Should we just continue on the sidelines?


The answer to that question lies within your own trading behavior.  At this juncture, I wouldn’t make any new large bets on stocks.  I would be overly cautious to the amount of risk that lies with going long.  We aren’t at the optimal point where we can say this is the “moment.”  However, the market did confirm the rally so it wouldn’t be horrible to test the waters here. 

We begin our distribution count again, any day that sees an index lower than .25% and with volume marks as a distribution day.

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