Online Stock Trading | Stocks Consolidate Gains Nicely

Stocks Consolidate Gains Nicely


Filed Under Market Commentary |

Today was a great day for stocks to consolidate recent gains.  Stocks simply can not go up in a straight line, digesting gains is needed.  By now, most should have a strong long bias in their portfolio rather than in cash.  Stocks like BIDU, AAPL, GOOG, JRJC, RRST etc have made moves and should have profits taken off the table.  By far the most important element to making money is knowing what the general market is telling you.  Last week many were not positioned correcty before the FOMC policy statement.  It was a costly move to those who were short or 100% in cash.  Those who were long with cash on hand were properly rewarded. 

In my polls section I have put up whether or not we see new highs.  I have absolutely no idea if we are going to hit them or not.  But, I do know that we have strong leaders who continue to move higher.  Even with that said, we could see some price consolidation as the VIX slides further and with the equity put/call ratio showing bears are getting lazy, current reading is roughly .60.

Be on the look out for some stocks breaking out, GEOY and INOD come to mind.  Another stock who brokeout a few weeks ago that is looking to make a base here is EHTH.  It’ll need a few weeks to tighten up before I take a look see at it.  However, I would flag this and watch how this one works itself out.

Stocks continue to point to higher prices, make sure you are positioned correctly.

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