Online Stock Trading | Stocks Avoid Distribution, End well off Lows for another Bullish Day

Stocks Avoid Distribution, End well off Lows for another Bullish Day


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A slew of economic data sent stocks lower in the morning, having many believe we were ready to crash. As oil neared $127 a barrel stocks could not be pushed much lower. Rather than continue to hit new lows stocks began to lift off their lows. The NASDAQ was positive by 1pm shrugging off the negativity in the market. Oil and Natural Gas, to a lessor extent have weighed on the retail and media crowd. Many are ignoring the market action, in its most simplest form. Price and volume, regardless of average volume, volume has been higher on up days and lower on down days. We have 4 distribution days on the S&P500 and 2 on the NASDAQ. Tuesday’s action is proving that selling hasn’t accelerated and we haven’t reached a warning signal regarding distribution. Bulls were rewarded yesterday and it is telling me we are going to continue to march higher.

 

RAME followed through yesterday with nice gains. What a pos stock that is moving in this market. I can not argue with the amount of volume it has seen as of late. This is, by far one of the most speculative stocks I have ever seen. It has very little aspiring fundamental attributes but traders are pushing this higher. It should be interesting to see where this little guy goes.

 

PWRD continues to keep above its 21dma. Yesterday’s selling was with above average volume, the good news is that it stayed above its 21dma. Although I would trim the position a bit, it is still holding that 21dma. OTEX continues to coil, I am waiting to see this one break to the upside with a ton of volume. FUQI continues to base build as well. Yesterday’s action was promising, another two weeks of sideways action will really set this one up.

 

There are stocks out there with excellent earnings and sales growth. But, one must exercise patience in this market. The market is pointing higher, stocks are emerging as the leaders. Keep it simple, price and volume at its simplest form are telling us we are moving higher.

 

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One Response to “Stocks Avoid Distribution, End well off Lows for another Bullish Day”

  1. Stocks Avoid Distribution, End well off Lows for another Bullish Day | Investors Paradise on May 14th, 2008 12:06 pm

    […] A slew of economic data sent stocks lower in the morning, having many believe we were ready to crash. As oil neared $127 a barrel stocks could not be pushed much lower. Rather than continue to hit new lows stocks began to lift off their lows. The NASDAQ was positive by 1pm shrugging off the negativity in the market. Oil and Natural Gas, to a lessor extent have weighed on the retail and media crowd. Many are ignoring the market action, in its most simplest form. Price and … [visit site to read more] […]

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