Wednesday Outlook: Day Trader's Market

It’s been a day trader's market and today was no exception. Another messy opening, a ramp higher, a dump lower and lastly a nice stick save higher into the close. Since headline writers don’t understand markets they write dumb things like Yahoo/Finance at the close: “Stocks End Higher, Buoyed by Late Surge”. Yeah, right.

There really is no apparent reason why stocks rallied [maybe an auto bailout?] into the close other than traders could push it. The key to events like today’s end-of-day ramp is low volume within an oversold downtrend. Trading desks note this and watch the volume closely. Armed with free TARP money, they try to push it in the other direction to spot resistance. As long as they find little resistance they’ll continue to bid it higher. And so it goes.

Volume picked up dramatically in that last 45 minute ramp higher. But breadth continues negatively and a look at it doesn’t reflect a healthy rally today.




































































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