Sweet Rally, Light Volume



Nice day for the bulls. Net on the day the Dow managed to get back over 8500 to 8504.08, up 235.44, a nearly 3 percent gain.  The S&P 500 was up 26.83 to 909.71, also closing very near its high for the day, and the Nasdaq 100 up 37.62, right at its high for the day at 1392.73.  The Philadelphia Semiconductor Index (SOXX) was up 9, a gain of almost 4 percent today, at 251.28.

Advance-declines were 7 to 1 positive  on New York, with 2727 up and 362 down, and 4 ½ to 1 positive, or 2205 to 546,  on Nasdaq.   Volume was light until the last 45 minutes when it surged into the close.  Up/down volume was 14 to 1 positive on New York on rather light total volume of 1 1/4 billion.  Nazzy traded just under 2 billion and had about a 6 ½ to 1 positive volume ratio.

MOS did well today and I hope some of you took it, the only other name that triggered was TECH, which opened strong, but then faded. I’ll take the blame for that because I should have made it more of a point NOT to trade the open. I have mentioned it a few times, but try and stay out of the market for the first 15 minutes. Longs will usually pull back and shorts will usually bounce to give you a better price. Unless you are a  pro trader or have strong wind at your back, try and resist the temptation to trade right at the open. We will always have another one if you miss it. When the market was imploding months back I was usually short pre market because I knew extreme pain was coming all day, this market is different, it’s getting a more rational feel to it, mainly because hedge funds aren’t hitting bids with forced redemptions like they were back then. TECH is still fine, just remember that.

LPHI triggered the other day and is starting to act well, the trigger was 14.75 (short)  and today it traded a little better volume to the downside, its a fairly thin issue. ESL acts well and the volume is picking up. Watch the shorts that haven’t triggered yet, keep them filed away because they could come in handy when the market catches a breather, if they start growing hair I will let you know and I will take the names off the list.

Here is a potential short to keep your eye on, there is a possibility that it could gap down because it’s close to the trigger price, don’t chase and wait for a bounce over 20 or slightly under to initiate a short.


I will update all of these on twitter as needed. I’m finding Disqus to be the best forum for questions because I usually know it”s a subscriber. Let’s stay with twitter during the day for updates but if you have questions comments or concerns hit me with an e-mail or Disqus comment section. I like Disqus because others can see the question  it and subsequently learn from your question.

See you in the morning.

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