Stocks continue to add to gains
Stocks hit multi-year highs as late afternoon selling puts a damper on the day. Melt-up Monday’s are the “norm” since the March 2009 bottom despite the calls for a market top. Volume couldn’t keep pace with Friday’s level, but the lack of volume on Mondays has been the norm too. The two o’clock hour has been the time for sellers to establish themselves as of late and a bit of panic rushed in today to spice things up for this market. Today was a solid day with a minor gap opening with buyers supporting the stock market.
Crude oil and natural gas fell on the day as warmer temptures helped ease prices. Natural gas, a big source of heating fuel continues to make the trek lower after trying to find a bottom in late 2010. Buyers are simply not around to support higher prices for natural gas and bottom feeders will be handed hefty losses being a hero. Crude oil is a proxy for the US Dollar, or so it is perceived. Any time there is a disturbance in the world the crude oil market will overreact in the slightest chance supply lines will be cut. In any event, lower prices will certainly help out the average American family.
Stocks continue to act quite nicely as AAPL stock made a new multi-year high with above average volume. A good sign for the market to see a large cap technology stock, a beloved one at that make a new high on above average volume. One of the best stock market tips out there is when a stock makes a new multi-year high, or even a new high on light below average volume is a warning sign. NFLX stock also made another new high, but the stock quickly reversed its gains, but volume was on the lighter side of the 50 day volume moving average. Short-sellers continue to try and pick the top in NFLX and continue to be proven wrong about the stock.
Pay attention to the price and volume action of your individual stocks. When you trade on gut feel and emotion it only leads you to make bad decisions. Bad decisions will lead you to churn your account and more importanly your psyche. Maintain your edge by removing the emotion and gut feel and focus on what truly matters: PRICE and VOLUME.
Always cut your losses short!
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