Online Stock Trading | Weekly Volume Grows as Stocks Eye New Highs

Weekly Volume Grows as Stocks Eye New Highs


Filed Under Market Commentary |

Stocks this past week showed great resistance to the downside.  For the week, the NASDAQ bounced off its 10 week moving average and saw a huge volume surge.  The S&P 500, Dow Jones Induatrial Average, and the NYSE composite did see a bounce off their respective 10 week moving averages.  However, these indexes did not see the surge in volume nor the price set up for new highs like the NASDAQ did.  The NASDAQ is showing that it wants to stay as the leader and wants to move higher.

Despite what we are being told by our left leaning media, stocks appear to be headed higher.  Although many stocks are looking like they are beginning to form parabolic moves.  We are 5+ years into a Bull Market, the NASDAQ has gained 141% since Oct. ‘02 lows.  This isn’t the time to be ultra-bullish nor is it the time to be ultra-short.  Just check out how you’d be doing withe QID or SDD or any other of the Ultra-Short ETFs.  You would be losing money!  This is the time to be super cautious with any new buys and to keep cash on hand. 

Speaking of new buys, I do not see much other than the China plays I have mentioned in prior posts.  The one I like to highlight is YTEC.  Just need it to settle for a few more trading sessions and have it breakout. 

The FOMC should provide us with some spark.  Mr. Bernanke and company will take Center Stage this week!  Never underestimate the FOMC, I wouldn’t be surprised with a large cut in the discount window shrinking the spread between the Target rate.  Should be interesting if we rally with the FOMC rate decision.

Always cut your losses!

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