Monday, April 02, 2007

NASDAQ: Double Inside Day



Looking at just the indices you would think it was a quiet day, but there were groups of stocks that made some break out moves today.

Last week I commented on how this is a market of stocks and that we can make money on both sides of the market, well today was a great example of that. There was weakness in Airlines, Home builders and Banks, and strength in metals, oil and utilities.

The NASDAQ had another inside day, which tells me to be on alert for a possible trend day tomorrow.

For those of you who are observing Passover, have a happy holiday. I'll be taking the day off tomorrow as I do observe this holiday.

2 comments:

JS said...

Does it mean you expect the break out to be a set up for going short, as is the case with the sectors like XHB, XLF etc?

Kevin said...

It can go either way... My point is that when the market does break out of this tight range, you probably don't want to be on the wrong side holding onto you position hoping that it will reverse. I'd rather go with the momentum than against it if the market breaks out.

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