Stock Market Analysis – 07-01-2009
The summer’s been slow and this holiday week has been even slower. The healthy consolidation keeps pushing along, so the next move should be a playable one now. It’s funny how everyone was lamenting our inability to save back when the savings rate was near zero and the economy was booming, but people are saying we need to spend more now that the savings rate is up to 6.9%. This is one way to get the banks back in business though, since they’re racking up deposits while paying out next to nothing. Expect even less action as the week closes tomorrow. Have a happy and safe 4th of July everyone.
Stock Market Analysis – 06-26-2009
The week ended as a dragonfly doji with light volume. That means the bulls should take over here, but I wouldn’t bet on them dominating the market yet. A couple more bounces in this range and I’ll be ready to pack it up for the summer.
Stock Market Analysis – 06-25-2009
I’m interested in seeing whether or not the market stays under $925 on this swing or if it will go all the way back to $950. We’ve been seeing more price action lately, but the low volume still says consolidation.
STEC (STEC) – 06-23-2009
STEC is a hot tech company that makes solid state drives. You definitely want to avoid this if you’re not an active trader, but it looks like it will have some nice swings to the upside and downside in the near future. A fairly strong company by the numbers that carries no debt, the explosion this year was well founded and came at a good time to be amplified by the general bullish market conditions. Increasingly powerful breakouts look like they may lead to a classic bump and run pattern. While a company may stay fundamentally strong during a reversal, sometimes stocks just get too overbought to sustain the momentum.
My play on this one is just to enter it manually as a prescreened stock into my auto trader. If I were manually trading it, I would be waiting for the reversal since we’ve already passed the point that I would feel comfortable trying to swing trade to the upside. Of course a stock this strong should also be put in the watch list for later on as a bullish position to take after a good correction and base.
Stock Market Analysis – 06-23-2009
The volume continued to wane in conjunction with a very narrow trading range. $875 is still the interesting level to watch for this slide.
Stock Market Analysis – 06-22-2009
Is that all I have to do to get a good drop? Just comment on how the market is looking strong? The weak volume today doesn’t convince me that the bulls are done for, but hopefully this comment will trigger another plunge. Oil seems to finally be coming back down to earth, but I still like the long term potential for it. I don’t think our dependency on it is anywhere near done with. Hope for OIH to hit the $80 range, or if we’re really lucky, back down to the $65 range.