Online Stock Trading | Broken Leaders Advance NASDAQ

Broken Leaders Advance NASDAQ


Filed Under Market Commentary |

1:30pmEST  AAPL and GOOG lead the NASDAQ higher as the S&P500, Dow Jones, and NYSE Composite take a dive.

Beaten down leaders led the market Friday.  RIMM, AAPL, GOOG, and BIDU all finished the day higher pushing the NASDAQ into positive territory.  However, all else where stocks simply couldn’t muster any strength to close in the green.  There has been a lack of new leadership to emerge from this market and a lack of accumulation.

Options expiry week always makes for a good time for the market.  February options expiry has the S&P500 down the past 14 out of 16 sessions.  The way price and volume action has been played out I would be hard pressed to go against those odds.

Taking a look at AAPL, GOOG, RIMM, and BIDU as our old leaders.  All 4 prior leaders were higher on the day however volume subsided.  Not a terribly good sign to see if you are trying to enter into these stocks.  Too many market participants are calling these bargains at the moment.  A dangerous way to play a market when your former leaders are not recovery on stronger volume.  The lack of conviction would have me steer clear of these former leaders.  RIMM may be the only to try for its 50dma, if it were on low volume I would be willing to short the stock.  The others, any rise to their respective 21dma and I’d be willing to enter into a short position.

This market still has not shown that it can recover from its most recent decline.  Its best to stay away from stocks until new leadership emerges and Accumulation appears!

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