Seeking Alpha

Joshua Hayes'  Instablog

Joshua Hayes
Send Message
Joshua "MauiTrader" Hayes is CEO, President and founder of Big Wave Trading Inc., a Maui, Hawaii-based stock market advisory service. Hayes is a well-respected stock trader who combines fundamentals, technicals, psychology and money management to trade professionally for his personal,... More
My company:
Big Wave Trading
My blog:
Big Wave Trading
  • Volume Ends Lower As Stocks Close Off The Lows 0 comments
    Sep 21, 2012 3:18 AM | about stocks: QQQ, DIA, SPY, IWM

    The week of consolidation continues as debate over whether or not this market can go higher rages on. Overnight China's flash PMI disappointed showing the country continues to slow significantly. China's disappointment sent futures lower across the board. US economic data continues to be uninspiring as jobless claims remain high. Buyers did step up at the end of the day putting a bullish tint on the day. Volume ended the day lower across the board as the NASDAQ escaped a day of distribution. Week's like this one will certainly shake the confidence of those who are long the market. Our uptrend remains and we'll remain long this market until price tells us otherwise.

    For those who simply follow price do not concern themselves with whether or not a trend is over. At the moment we have plenty of folks including Elliot Wavers citing extreme bullishness as a reason the market is about to head lower. Hey, they could be right. No one knows the future and the way the market is acting says the uptrend remains intact. Tomorrow may change and those calling for a correction may be right, but what if they are not? What happens then? We follow price action of our stocks and the market. Everything else is noise.

    The one sentiment survey I do talk about here is the AAII survey. At the moment the split between bulls and bears is 38% to 34%. Both figures remain at extremes and this survey was done earlier in the week. As the market heads sideways are those who are bullish going to remain so? We can come up with an infinite about of scenarios and guesswork on what may or may not happen. Guess what, it doesn't matter!

    Football season is in full swing and we'll have another fun filled weekend after tomorrow's option expiry. After a long week of consolidation tomorrow will be interesting to watch. Have a great weekend!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: China PMI, Elliot Wave, AAII Survey Stocks: QQQ, DIA, SPY, IWM
Back To Joshua Hayes' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.