The Wrap 6/7/10

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It was a another slow motion sell off which leads me to believe we may be do for a rally. Volume was anemic as they walked stocks down.

AGM was a nice short, but it stopped. Many of you held through the stop or reentered higher which was the right thing to do in a down trending market. Many of you newer traders are “getting” it.

FSLR barley triggered and it will need another hard thrust down from the market to really break. It hit our level late in the day and I have tightened the stop in case the market decides to be strong t the open. I see 90-95

Until we find a trend, expect choppiness and some stops along the way.

PCLN still looks weak and will need a thrust lower to trigger. I see 160

It was a scalpers market today and difficult to find any traction until the end of the day when we rolled over.

Advance-declines were a little less than 3 to1 negative on the New York Stock Exchange and 5 to 1 negative on Nazzy. Up/down volume was nearly 3 to 2 positive on New York, but almost 17 to 1 negative on Nazzy. The NDX traded below and closed below the 200 DMA. So did the Russel 2000. The Rusell was the last of the indexes to keep a close above the 200 DMA. Not anymore.

Regarding UYM, we entered a one half position on Friday at $27 with the idea of averaging in for a swing. I never do this, but I still think it could be a good play. We averaged the other half position around $25 today which gives us an average around $26. Based on that cost, I have adjusted the new stop to$24. It is a play on a short term reversal and if I am wrong we will get stopped.

This market is due for a rally soon or a notable implosion. Keep em’ tight.

Nothing new tonight guys. We will be back at it early tomorrow. If any of you new subscribers are NOT receiving e-mail alerts( I believe there was only one today) please e-mail  [email protected]

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