Online Stock Trading | Stocks Found some Traction; Volume Mixed

Stocks Found some Traction; Volume Mixed


Filed Under Market Commentary |

When the closing bell rang, stocks showed some life albeit with mixed volume.  NYSE volume was higher on the day while NASDAQ volume came off Friday levels.  Overall, the volume picture isn’t great as it it came in well below average.  Not much coming from today’s session other than commodities continue to contract.  Whether they are signaling a global slow down or are just consolidating.

Outside the USA the Shanghai index continues to get slaughtered.  Last night the index fell 4% while its sister exchange the Hang Seng gained 1.26%.  Taking a look at both of them, they are clearly in bear market territory and Wall Street has largely ignored this fact.

I am thinking today will be setting the tone for the market.  It is quite clear that the big boys simply have stayed on the sideline.  Many are licking wounds from Quarter 1 and/or many of them could have been feeling worn out as Feb and March we did not gain any traction.

What is still troubling this market is the lack of New Highs being made compared to New Lows.  Yesterday numbers are:  New Highs 38 and New Lows 155.  You do not get these types of numbers in a market that has bottomed.  Other troubling signs is the amount of stocks over their short term moving averages compared to long term moving averages:

Stocks over their 20dma:  57%
Stocks over their 50dma:  39%
Stocks over their 200dma:  21%

Not the ideal situation when you have double the amount of stocks over a short term moving average than their long term.  It is showing that stocks are not in a long term bull market.  I continue to believe we are in a bear market bounce.  Until we get real accumulation in the market and some other signs of life, I believe the market will return to the lows and make new ones.  Cash is king!

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