Monday, May 10, 2010

Stocks Surge

The stock market gapped sharply higher today with the S&P gaining 4.4% from Friday's close. Looking at the above 60 minute chart you can see that the S&P has retraced .618% of the recent decline. In the lower panel is the stochastic indicator and it is in overbought territory.

The question that comes to mind is do we short this bounce? Well if I I see the market begin to roll over along with several of the key groups that I follow, I will consider shorting this bounce.  Some of the oil drillers were weak today so that's one of the groups I'll be watching., Let's see how things open tomorrow and we'll take it from there.


ben said...

Thank you for posting more frequently. I always enjoy your post,
although some of your recommendations did not work out.

The market goes up because EU is creating more debts to pay for existing debts is mind-boggling.
It looks to me consumers are given up their houses so they can free up cash to buy other things. This will not work in the long run as someone must pay for the loss from the default mortgage. Something has to give somewhere down the road...

Kevin said...

Thanks Ben, I remember you.


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