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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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  • Manufacturing Slows, but Fails to Slow Down the Market 0 comments
    Sep 15, 2010 9:43 PM | about stocks: JKS, RDCM, RES, MIPS, NR, SPRD, ISLN

    Volume slows as stocks add to gains

    Weak manufacturing data set the stage for early morning selling, but like Tuesday buyers stepped up to push stocks higher.  However, today’s action wasn’t driven by any one stock like Tuesday and CSCO’s dividend announcement.  The market ignored its seemingly overbought conditions to push higher into the close with the NASDAQ overcoming the 2300 level.  Major market averages once again tested their 200 day moving averages and found support a very bullish sign indeed.  Another positive day even with volume coming just under yesterday’s level as this market remains in a solid uptrend.


    Leading stocks continue to act well and all though we have yet to see monster moves we may very well be on the cusp of these moves.  While we all clamor for MONSTER MOVES they simply do not happen every day.  For example RDWR (Big Wave Trading members were long prior to yesterday’s move) type move will become more frequent rather than an exception.  We do have the ingredients to foster such moves.  The question will be whether or not you have the ability to identify the stocks?  Big Wave Trading members will be on top of these high flyers.

    Many traders continue to try and trade for a pull back because they feel the market is overbought.  The same goes for oversold market conditions.  What is exciting for most is thought of buying “low” and selling “high” over and over again.  If it were THAT easy we would have many more successful traders, not to mention many more million, if not billionaires.  The key to all of this is to know how to hold onto the best stocks as they go through “normal” corrections or reactions to moves higher.  Most do not understand how to hold even if the market or stocks appears to be overbought.  Buy and hold traders are a completely different story, but this class of investor tends to sell well after a stock makes its run.  We would rather buy stocks at or near proper entry points and sell the stock as it moves up in its run.

    Getting back to this market we are continuing to find stocks either breaking out or setting up in bases.  Not to ignore the current holdings we are seeing add points to our current holdings.  An uptrend in doubt would not be showcasing so many buy points.  In fact, we’d be seeing stock failures all over if this uptrend wasn’t meant to be.  Sticking to the top stocks will yield us plenty of gains.

    Cut your losses short and ride the Big Wave of your winners.

    Top Current Holdings With Total Returns Since Purchase That Were Higher Today: JKS 118% RDCM 52% RES 33% MIPS 25% NR 24% SPRD 20% ISLN 17%

    Disclosure: Long: JKS RDCM RES MIPS NR SPRD ISLN
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