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MARKET WRAP UP 07/29/10
Both the morning gap higher and the midday selloff were faded today, as the S&P 500 wound up closing down 0.42% to 1101. The past three days have been an exercise in futility for most swing traders, as the market is in the process of consolidating before making its next big move. The mixed picture of positives and negatives for the both the bull and bear cases has been reason enough to take a pass on trying to be a hero and aggressively position oneself in directional bets.
As the updated and annotated daily chart of the S&P 500 illustrates below, despite the wide price range we had today, the market closed near the middle of it, indicating just how indecisive market players are.
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The other key indices and sectors, however, continue to give the bulls the edge with their relative strength to the S&P. The updated and annotated daily charts of the Nasdaq Composite Index, Russell 2000, Dow Jones Transportation Average, and the emerging market ETF all indicate as much, seen below.
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Periods like these can be extraordinarily frustrating for traders, as they struggle with the idea of patiently sitting in heavy cash, waiting for better market conditions. For all I know, circumstances can change as early as tomorrow, which is all the more reason why it is important to perform nightly scans on various stocks and sectors. Indeed, many charts are looking remarkably better than they did a few weeks ago. However, nothing is guaranteed by Mr. Market, especially when it comes to traders complacently assuming that we have started a new trend higher.
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TOTAL PORTFOLIO:
EQUITIES: 22%
- LONG: 22% ($BX $SAPE $POWR $JMBA)
CASH: 78%
Keep ’em coming. Always a get take on Mr. Market!
been absent at posting BUT haven’t missed a post…….
…i think we go down, like everyone thinks….therefore we go up…i think….i’m confused like the market.
Sold all of my TWM (now 100% cash).
nice
Hey man; can u comment on MU it is breaking down and I dont know
if there is a opportunity here?
it is getting oversold now, but it is the proverbial falling knife and carries the risk of becoming much more oversold than anyone thinks possible
the 26 week EMA has turned down and it also just took out it’s mid-June low
Hi Chess, thank you for your post, I appreciate your insight in the market.
Quick question, what do you think about DCTH? it’s just dropped to the 200 ema, do you think this is a buy if it reverses here?
Thank you. Keep up the good work.
Thanks, VC.
DCTH Is neutral for now. The 7.40-7.50 zone must hold. A break and hold below it would be very bearish. To me, you can buy it for very quick trade if it holds the 200 day, but in the coming weeks even if it is going higher, it still needs time to firm up. Note the 50 day is still sloping down hard.