Tuesday, March 08, 2011

Stocks Continue To Chop Around


Stocks rallied today but were unable to trade above yesterday's high establishing what is known as an inside day. Over the past two weeks trading has been choppy which makes it difficult (at least for me) to make any money. In fact, over the last 10 days I tried buying this market and shorting it and lost money each time.

Volume for SPY seems to be heavier on the down days and lighter on the up days which is somewhat bearish but the trend of the market is still clearly up. I'm anticipating some kind of sell off but so far that has not happened.

Today's rally was primarily led by airline and homebuilding stocks with XAL closing up 4.75%. Even though stocks were up today I still saw lots of weakness. The NASDAQ, semiconductors and retailers appeared weak in my opinion relative to the market. The weakest groups were the oil stocks with XOI closing down almost 1%.

Like I said before, I'm anticipating a selloff but so far the uptrend is still intact. Lets see what happens tomorrow.

2 comments:

ben said...

Do you anticipate a correction or
resumption of bear market? by what percentage?

Kevin said...

Hi Ben,

The 4 year cycle is moving higher so I am expecting some kind of a pullback which I will be looking to buy.

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