Here we go, into the resistance zone between 1204 and 1230, and so far, so good. the market stalled for a bit at 1204 but gingerly stepped through it. Volume left a lot to be desired, but isn;t a big surprise as a lot of buyers are holding off here. Tomorrow options expire, so we shoould have quite a bit more volume, and likely some volatility as well.
The Nasdaq 100, now the leading index, has gone entirely through it's resistance zone and broke out today, and volume here was actually not bad. It looks like pretty clear sailing here until 2320.
The Russell 2000 is entering it's resistance one and is looks like it is going to have one hell of a battle on it's hands. If it clears this zone unscathed I will make Kudlow look like a perma bear.
It's getting pretty clear that the market is slowly gaining strength. it has taken a while, but the percentage of stocks on the Nasdaq above the 50dma is approaching 30. the zone between 30 and 50 is a transition zone, and if it can stay there for a few days, will be the best indication we have that the recent correction is over.
The NYSE is a little weaker, but still getting clse to making that transition (I consider the zone here to be between 35 and 55, based on past behavior).
The market is giving signals that it may be ready for another move up, sort of a siren song calling money into the market. Whether this will result in a crash on the rocks or a new bull run remains to be seen. Since I don;t know which siren song it is singing, I'll go with one of my favorites:
I am not a financial professional, just a guy that trades my own account.
I am also not a musical professional, just a guy that makes music on the computer. Thus, two blogs, one trading and on musical.
And, no, the picture is not me, it is the late, great John Belushi, one of the inspirations for these blogs.
This blog is focused on technical analysis of stocks and markets, putting heavy emphasis on chart analysis. My trading style is derived primarily from my mentor, William "Yoda" O'Neil, and the focus here is on leading and breakout stocks, but all forms of trading are covered to some extent. Economic and political news that effects the market are also topics here, and the blog may occasionally become a platform for my political and philosophical ranting. I keep several spreadsheets on Google docs which track various aspects of the market and readers are welcome to vies and comment on them.
Google Docs Spreadsheets
There are several spreadsheet that I maintain on Google docs to track various watchlists and trends in the market.
1. The earnings list - a group of small and micro cap, low float stocks that have exhibited recent rapid earnings growth. They are modeled along the lines of William O'Neil's CAN SLIM system, but limited to small cap, highly volatile stocks.
2. The relative strength list - a group of stocks which are near 52 week highs and have shown an increase in average daily volume. The list is limited to the top 200 stocks according to my methodology, which will be detailed on one of the pages of the spreadsheet.
It can be accessed here, and is also updates weekly.
3. Relative strength by industry - Uses industry data from Finviz.com to track the percentage of stocks within each industry that are in the top 25% of the 52 week price range, looking for trends.
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