Online Stock Trading | Stocks rally on greater trade, prove having opinions on the market to be costly

Stocks rally on greater trade, prove having opinions on the market to be costly


Filed Under Market Commentary |

Stocks rallied on hope that the FOMC has done enough to curb the decline in the Housing/Mortgage lending industry.  More importantly volume rose along with the price gains, do not be swayed by those who are calling volume “NOT ENOUGH.”  Ideally, we’d have volume through the rough however, past rallies show that we can have a lower volume rally that leads to new highs even though its below the 5odma.  Take a look at last August, while most waited for more volume they missed out on price gains.  Overall, great day for those who had a long biased with cash on hand.

Having cash on hand is a great thing when a price trend is confirmed.  The market confirmed the rally off the lows and needed to confirm the uptrend.  Since volume was lacking to the upside (day over day volume gains) the market needed another confirmation that this confirmed rally was for real.  With this, we can now move into solid growth companies that are breaking out. 

Will be searching for a few…

Market Speculator

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Comments

2 Responses to “Stocks rally on greater trade, prove having opinions on the market to be costly”

  1. Author_Ego on September 19th, 2007 4:43 pm

    Congrats on your JRJC call. 26% gain in one day is better than a sharp stick in the eye, that’s for sure. Anyway, well done.

    P.S. You have no idea how physically painful it is for me to compliment you.

  2. Market Speculator on September 19th, 2007 4:44 pm

    I am sure you are in great physical and emotional pain.

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