Volume didn’t return to the market today, and the market finished down slightly.
The market is very overbought right now and should pull back soon. If the market can work off its overbought condition and avoid a big sell off, it would be a very bullish sign
There were some triggers from the Watchlist, but some were under pressure in the afternoon, barely hanging on to their gains. Let’s look at those:
Good luck and good trading!
Happy New Year everyone; welcome back.
The market started off 2009, and ended the week, with a big gain. Al of the major indexes closed the week up over +6%. Volume was very low however, and low volume rallies in Bear Markets don’t typically lead to new Bull Markets.
The price action in the indexes does look bullish though. The 3 indexes broke out on Friday, as seen here on the S&P 500.
The 3 indexes are also setting up a squeeze play, described here. When this play triggers, it can often lead to huge moves. Right now, the setup looks like it could trigger to the upside, which would be great news for stocks.
We are in an IBD confirmed rally, and the following stocks from the IBD 100 have been highlighted as being near their buy points: TWGP, GMCR, MANT
I am seeing many charts that look bullish here, but last weeks low volume holiday rally is suspect until we see more volume. We will certainly see more volume this week. I prefer to wait and see what happens tomorrow before taking new trades. Nonetheless, here are a few charts I will be watching.
Most of these are ETF’s.
Good luck and good trading!
The Momentum-Trader Report will be offline for about 2 weeks, as I will be on vacation. I plan to be return with nightly reports and picks on January 4, 2009. You can subscribe to the RSS feed and get notified as soon as the site returns.
In the meantime, check out some of the great links on the right column. Also consider these market newsletters by two great traders:
Dan Zanger is regarded as the worlds best momentum trader. He turned a small account of around $10,000 into over $42,000,000 in just 18 months! He provides a market newsletter 4 days a week, with great picks. You can try it out free for 3 weeks by clicking here.
Joshua Hayes is the MauiTrader. He claims to be able to turn “thousands into millions” in the stock market. He provides daily market commentary and stock picks. You can try out membership to his site for 1 week for just $20 by clicking here.
Good luck and good trading!
