Markets Rally from Lows, Mimic August 16 Action

The crazy game of stock trading, many try but so few succeed. Wednesday’s action did not start nor did most of the day’s action seem like there was any bullish case to be made. Traders manhanlded the NASDAQ pushing it down as much as 2.8%. Wednesday’s action was quite similar to the action we saw on August 16th. Panic selling, traders dumping positions because they are trading scared. By 3pm the NASDAQ along with the other indicies looked poised to rally near the opens of the day. At the end of the day the NASDAQ had finished down .8% a mere 2 percentage points higher than the low. Volume increased dramatically across the board. Althought technically the NASDAQ notched its 5th distribution day, I can only take away from the day’s action that there is still buying interest left in this stock market.

A stock I am closely eyeing is ADAM. Check out the chart here:

Overview of ADAM:
A.D.A.M., Inc. provides health information services and benefits management solutions to healthcare organizations, benefit brokers, employers, consumers, and educational institutions. It offers online products, which include health information, decision-support applications, benefits management solutions and enrollment services; and offline software applications for education markets that are designed to teach gross anatomy and human physiology to students. The company’s online Health Management Platform includes the health information that is used for learning about general health concerns, specific diseases, medical conditions and treatments, surgical procedures, drug information, specialty health subjects, nutrition, and alternative medicines; and Health Risk Assessment Library that allows consumers to learn and make decisions about their health. Its Benefit Management Platform provides interactive content and applications that enable employees to understand the benefits provided by the employer, enroll in the optional plans, and obtain up-to-date information on their plans and other employer sponsored programs. The company also provides Broker Management Platform, which is used by insurance brokers to assist in running their offices, track commissions from their sales, and manage communications with their employer clients. The company sells its Health Management Platform through licensing agreements to hospitals, health plans, integrators, pharmaceutical companies, care management vendors, health-oriented Internet Web sites, healthcare technology companies, and employers. It sells the Benefit and Broker Management Platforms primarily through licensing agreements with benefit brokers for base products. In addition, the company offers professional services, such as implementation, requirements specification, testing, and knowledge management/training services. The company was founded in 1990 and is headquartered in Atlanta, Georgia.

I am looking for a bounce from its 50dma with volume.

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