The market had a good day, as a jump in durable goods orders offered some relief. But as expected, volume was very low today, as it will be all this week leading into the Labor Day holiday. Oil also moved higher, as Hurricane Gustav threatens platforms in the Gulf of Mexico.
There was a trigger from the Watchlist, and it actually held on to its gains, offering a nice gain for day traders. The chart actually looks pretty good, and could continue moving higher.
One recent trigger is consolidating right now after making a nice move. ENER could break some resistance around 80, and test new highs soon.
With the low volume we are seeing lately, especially this week, buying breakouts is risky, as they are often sold into. This is why heavy volume should be used as confirmation. So until we see more volume come into the market, I plan to stick with day trades, if I trade at all.
Good luck and good trading!
Stocks finished mixed today on very low volume today, the lowest volume day of the year actually, and the action was very choppy.
There was a trigger from the Watchlist. It was HIL, which gapped up slightly in the morning, triggered, then sold off hard for the rest of the day.
Buying breakouts has been very challenging this summer, especially this month. we are in the doldrums, so this is not surprising.
We will likely see even lower volume for the rest of the week, and I am not very interested in trading until after the Labor Day weekend. I will be keeping an eye on these stocks for day trade opportunities, just in case.
Good luck and good trading!
The market dived on lower volume today, with the three major indexes closing down –2%. As mentioned in last nights post, the S&P 500 had revisited its broken support line, which often happens before resuming the move lower.
There was a trigger from the Watchlist. I didn’t post this chart last night, it just didn’t look healthy, but I kept NNBR on the Watchlist. It offered a small opportunity for a profitable day trade, but market action kept me out of this one.
No doubt about it, the market looks like it wants to go much lower, and staying in cash is a good idea. If the market should bounce, I am keeping a short list of trade ideas, but these will be day trades, and only if they trigger on heavy volume. Otherwise, I will be passing on these.
Good luck and good trading!
