Selling pressure in MSFT holds back the NASDAQ as the market finds support at intraday lows. Kicking off heavy selling pressure at the 10 o’clock morning hour was better than expected ISM Non-Manufacturing figure as it rose to 59.40 from a reading of 57.10. Expectations were for a slight uptick of 57.2, but the service sector saw a rise in activity despite the weather across the country. A bit of panic set in, but as the S&P 500 plunged through 1300 and the Dow through 12,000 the market was able to find buyers. Volume picked up considerably as prices moved lower and remained elevated throughout the day. IBD has volume mixed, but Bloomberg has volume up across the board. Despite the difference in data price action remains strong. Now, it is onto the ultra-hyped release of Non-Farm Payrolls.
Last week as the Crisis in Egypt became escalated the market went into panic mode selling off and notching a big distribution day. Since last Friday we have been able to find support and even witnessed a follow-through type day this past Tuesday. Over the past two trading session we have seen the market digest the gains from Monday and Tuesday. Will tomorrow’s job report act as the catalyst like Egypt or will it push this market higher? Outside of distribution and loose chart patterns there isn’t any glaring indications tomorrow will repeat last week’s action. Any guessing here is gambling and odds are not in your favor by guessing. Judging by, the cards we have been dealt this week by the market all indications are we will find support and move higher.
If there happens to be another day like last Friday we’ll adjust and move forward. Adding to the stock market tips we have been giving out for the past few commentaries acting on a hunch or guess will only add pain to your trading life. Completely avoid going on a hunch and go with how the market is acting.
Another Chinese company has been accused of being a scam as CCME plunges south. If you do not think the selilng cannot get any worse just take a look at what happens when it does: RINO. Avoid these types of stocks all together. When price action indicates caution stay away, far away from the stock.
We did see a few stocks break through some cheat areas today. This adds to the positive signals this market has been giving off. Consolidation areas happen after big runs, we just need to avoid any further heavy volume selling. Remember to cut your losses short and let your winners run!