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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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  • Leaders Remain in Control as the Market Cools Again 0 comments
    Sep 23, 2010 10:07 PM | about stocks: CHTP, RDWR, JOBS, MIPS, SPRD, QLIK, TRQ, ASYS, ARUN, MMYT

    Stocks fall in the third straight day, but volume edges lower

    A lower than expected European PMI figure sent futures lower prior to the release of the weekly jobless claims.  The jobless claim figures have become a barometer for the job market, but the unexpected drop in claims helped fuel fear the early morning selling.  Buyers didn’t step up until a surprise to the upside in the Housing market helped fuel the market higher.  However, the market couldn’t support the higher prices.  By 3:30pm EST the market appeared to heading for a crash but late day buying helped save the market from closing at its lows.  Volume fell on the NASDAQ and S&P 500 as the indexes skirted distribution.


    Once again MSFT stock did not help things as traders and investors remain disappointed with the stock.  In addition, MSFT stock is a laggard and continues to lack the support needed to become a winning stock again.  AAPL is a stock that was a laggard, but turned into a leader with innovative products.  Unfortunately, MSFT makes up a large part of the NASDAQ and its movement can swing the NASDAQ.

    Many leaders pulled back in light volume and a few of them extending their gains.  If leaders had begun to breakdown on heavy volume it would be a sign the market would be heading lower.  Today wasn’t the case as many leaders either added to gains or fell back in lighter trade.  It is important now to see leadership take hold and move higher.

    The market made great strides earlier this month and the past 3 days it has been able to consolidate its gains.  Since April’s highs we have been trading in quite the trading pattern conditioning traders to think we’ll head right back down the other side.  However, at this point we have the leadership acting well enough to avoid further selling and continue to move higher.  Plenty of moves by big name leaders like NFLX and BIDU to push this stock back into April’s highs.  If this is not meant to be, we’ll take our gains from this month and wait for the proper opportunity to get long.

    Enjoy Friday’s action and the weekend!  Remember to cut your losses short!

    Top Current Holdings With Total Returns Up Today: RDWR 55% CHTP 36% JOBS 34% MIPS 29% SPRD 29% QLIK 16% IVN 15% ASYS 15% ARUN 14% MMYT 12%

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