Online Stock Trading | Stocks Rebound as Volume Sneaks Back In

Stocks Rebound as Volume Sneaks Back In


Filed Under Market Commentary |

Stocks broke from the gate higher, volume rose significantly but was below average.  The time we had a great first day of Q2 was back in 1938.  After that move in ‘38 volume was, on average 7% below the 50dma.  It wasn’t until June of ‘38 where stocks broke out and resumed an uptrend.  History repeats itself, many times wearing a different coat.  This time the NASDAQ is featuring similar action.  Only time will tell whether or not we repeat ’38s action, but we certainly are setting up for it.

I think it is important to keep a good level of cash so you can begin operating on the long side.  We only have two distribution days on the books since the Dow’s follow-through.   I would not be using margin at the moment, conditions of to clear up for that.  Price and volume need to line up to give me the comfort level to use margin.

Cash is King, if you went into cash at the beginning of the new year you are now sitting pretty to pick up some excellent quality growth stocks!

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