Online Stock Trading | Markets Fight off Naysayers; NASDAQ Leads all Higher

Markets Fight off Naysayers; NASDAQ Leads all Higher


Filed Under Market Commentary |

The gap open on Tuesday had many traders rethinking their positions.  Stocks began to fall after the initial gap open.  A scenerio for longs was needed:  Rally higher and close at the highs of the day.  Shorts on the other hand were licking their chops as stocks began to slide as the morning wore on.  My colleague over at Big Wave Trading, MauiTrader said this before yesterday’s open:

[2007-10-23 00:30:11] [MauiTrader’s Lounge] Brian : I gotta admit, I am afraid of a gap-up open.
[2007-10-23 01:28:03] [MauiTrader’s Lounge] MauiTrader : aloha
[2007-10-23 01:28:05] [MauiTrader’s Lounge] MauiTrader : well brian
[2007-10-23 01:28:08] [MauiTrader’s Lounge] MauiTrader : i hope this gap open
[2007-10-23 01:28:13] [MauiTrader’s Lounge] MauiTrader : ends with a close at HOD EOD
[2007-10-23 01:28:16] [MauiTrader’s Lounge] MauiTrader : that on top of the
[2007-10-23 01:28:19] [MauiTrader’s Lounge] MauiTrader : gap lower and HOD close
[2007-10-23 01:28:23] [MauiTrader’s Lounge] MauiTrader : would be the greatest thing

Little did shorts know that they would be creamed by the end of the day.  NASDAQ roared higher and lifted all other indicies.  Volume swelled on the NASDAQ with the NYSE and S&P 500 saw slightly lower volume.  There are no questions about NASDAQ’s leadership and stock prices are still pointing higher.

AMZN reported earnings after the bell, 280% profit surge and the stock got hammered.  A conservative outlook by the company sent skiddish after hours traders to hammer the stock down to $90.00.  This is a similar case with AAPL, where AAPL would blow out earnings and then be conservative with guidance.  After hours trading would kill the stock only to see it higher 3 months later, much higher.  I believe a similar situation is happening with AMZN at the moment, there is no reason to believe that they’ll miss their own conservative guidance.  Watch out for AMZN.

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