Online Stock Trading | Stocks See the Light, Volume still Below Average but Higher

Stocks See the Light, Volume still Below Average but Higher


Filed Under Market Commentary |

A great day for the bulls on Wall Street on Wednesday as the NASDAQ soared over 3% and the IBD 100 index catapulted higher by 4%.  Volume, although below average screamed higher from the previous trading session.  We have now seen back to back days of accumulation, not institutional quality accumulation but accumulation nonetheless.  Earnings expectations continue to be blown away as many Wall Street Analysts, who I could care less about have taken their estimates far too low.  When expectations are too low, seemingly dismal results are welcomed as “not that bad.”  Stocks will move higher, history always repeats itself.  This isn’t the beginning of a new bull market run, but we could definitely see these gains hold and more gains to come.

Since the peak of 2000 the NASDAQ is eerily similar to the Dow Jones Industrial Average from 1929-1938.  I’ve made reference to it here as well as in Big Wave Trading Platinum Members and those who read the .Net site.  William O’Neil referenced a similarity between now and then on Tom O’Brien’s radio show on TFNN.  I believe we repeat the action as was seen in 1938.  I don’t believe we’ll see the 50% run up, but I believe we see significant gains then ultimately return back to Jan-March lows.  It wasn’t until 1941 when the market ultimately bottomed and started a huge bull run that lasted through much of the 40s.  With this said, we must stay laser focused on Today’s price and volume action and not trade on some opinion.  At the moment we are seeing more upside to this market.  Get positioned in the best stocks, quality growth names:  PWRD, VISN, and GU to name a few.  Be positioned to take advantage of the upside while minimizing the downside!

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