Down Up Down
The market is forming a small range here. Technology is the new leadership theme for market and when the market correction is over the sector would be ideally placed for rally. The biggest area of concern is small caps. The speculative favorites are the ones which are showing weakness. That is on of the reason the 65 days ratio is stuck in negative territory.
In the short term the low volume holiday environment is bullish and with one of the indicator (stocks up 50% plus in month at 2) showing possible strength around, we will likely see strength. The market is ideal environment for day traders and short term traders. Nimbleness is the key.
With Nasdaq showing strength the post holiday action might offer some opportunities for light commitments in technology sector. Number of stocks in the sector are showing relative strength, but again most of them are in the large cap technology area. However if the overall market gets in to downswing, much of this pocket of momentum in technology sector will not be able to sustain its up move.
In the short term the low volume holiday environment is bullish and with one of the indicator (stocks up 50% plus in month at 2) showing possible strength around, we will likely see strength. The market is ideal environment for day traders and short term traders. Nimbleness is the key.
With Nasdaq showing strength the post holiday action might offer some opportunities for light commitments in technology sector. Number of stocks in the sector are showing relative strength, but again most of them are in the large cap technology area. However if the overall market gets in to downswing, much of this pocket of momentum in technology sector will not be able to sustain its up move.
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10 comments:
been on vacation 3 of the last 4 weeks - looking forward to getting back into trading...
Pradeep,
Check out my latest post, I think we are now seeing the beginnings of a leadership change from tech back to financials.
F.
f, latest post on your blog?
whats the url?
Is it safe to stat buying stocks for the long term? or best to sit in cash if you are not a trader?
thanks,
Mike
F's blog
http://ftrading.blogspot.com/
Pradeep,
other questions for you.
1) What do you think of trading with the buys of insiders?. Especially insider clusters?. Is this a good trading strategy?.
2) Related to this question, do you think that to follow the Buy/Sell ratio is a good thermometer of the market to follow emerging leading sectors, bottoms of corrections etc?.
3) Your strategy of EP can benefit significantly from information of implicit volatility of the stocks or short sale data?.
Thanks a lot.
Market still looks GREEN and soon we reach the old highs. September 2007 will be a lot different than August 2007.
"Head and Shoulder Reversal" pattern on DJIA,SP500,NAZ and GE at the moment. We also have 50% of the DJIA stocks above the 50sma line as we go into next week. PG and IBM is leading the way up.
What good for GE is good for the market.
The talking heads on CNBC were expecting a retest of the lows on the DJIA where they may buy. That means most likely it does the opposite and moves up another +300 points without a retest.
Want to know how to find the lows of the stock market? read "HOW TO READ THE STOCK MARKET " by Joe Granville a 40 years plus veteran how he finds the lows of the market turns within days.
http://www.granvilleletter.com/
Long on Goldman.
Pradeep, we anxiously await your take on the market here. Hope you had a pleasant holiday
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