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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
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  • Stocks Erase Losses as July Comes to a Close 0 comments
    Jul 31, 2010 9:14 PM | about stocks: AAPL, GOOG, YHOO, INTC, GS, MSFT, IBM, C, CSCO, SHLD, CMG, POT, GLD, NEM, BIDU, ISRG, DELL, PG, EBAY, PCLN, MMM, QQQ, SPY, DIA, TBT, DGP, EWY, VXX, OVTI, AVGO, BP, CTRP, SBUX, CRM, ROVI, VMW, MELI, RVBD, ISLN, IGTE, ASPS, NTAP, PWER, FFIV, CTXS, EZCH, ALTR
    Volume Eases, but Stocks Come Well off Lows

    The end of the month trading is usually described as window dressing and today could be viewed as such.  GDP readings of 2.4% kicked off early selling as futures indicated a big drop at the open.  By the opening bell the Dow and S&P 500 opened well above where futures had indicated.  However, it wasn't long before sellers took over and punished stocks prior to releases of the PMI and University of Michigan Consumer Sentiment figures.  Better than expected readings helped move stocks into positive territory erasing hefty losses from the first half hour of trading.  From there it was whipsaw action on light volume.  Stocks did move higher in the final hour, but were unable to hold the nice gains finishing near flat on the day.  NYSE volume did see a surge in volume at the close as prices fell, but failed to push it above yesterday's level.  Solid price gains, but we lacked the power of institutional backing.

    This market could continue to move higher here, but the S&P 500 and NASDAQ have been struggling with their 200dma.  The positives on the day was we were able to see the indexes find support at the lows and work their way higher.  Price is the end all be all, but volume helps us determine the strength behind the moves.  Could this be a powerful new bull run, at the moment it does not appear to be one that will?  If volume decides to pour in on the upside the chances are increased greatly that it can turn into one.

    There have been a few leaders taking it on the chin as of late and it has raised a few warning signs for this market.  Outside the three distribution days and one day of stalling action the movement by the leaders are what is important.  William O'Neil constantly teaches to watch your stocks and they will guide you.  If your stocks are acting well, that is a good signal and the opposite NOT a good signal.  For members I have posted a list of leaders holding up and struggling <a href="www.bigwavetrading.com/stock-forum/viewt...;t=226&amp;p=19375#p19375" target="_self">here</a>.  If you aren't a gold or platinum member and would like to upgrade or subscribe email us at sales@bigwavetrading.com and we'll get you a discount for the subscription.

    July was the best month so far this year.  Even February, March, and April when the market saw a sizable rally we didn't muster these types of gains.  Does it mean anything, perhaps as we started July in terrible shape.  However, we've been able to rebound off the lows and finish with decent gains.  Perhaps today was a bit of window dressing for funds to show solid performance, but to guess is simply gambling.  Like O'Neil states go with your stocks and if they are setting up to buy then you buy.  Or if you are holding a stock and it begins to flash sell signals than you sell.  Do not over-complicate the process.  Keep it simple.

    Enjoy the weekend!


    Disclosure: Long: PWER
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