With yesterdays trading, the daily momentum model turned negative, and despite the weekly positive positioning of momentum, monthly and daily momentums are aligned with the bears. Volume again was very light, and buyers were absent. As stated previously and which I discussed on Vince Rowes show yesterday, this is not the kind of environment for which pattern trades show up with my methods. When traders come back in September, we should resume finding patterns that will work from a swing perspective, but for now, the indexes are wedged between narrow ranges as are most stocks in this environment. We have to be patient with capital as only acceptable set ups should be taken to stick with the trade plan.
Stocks closed lower Wednesday as the disappointing economic data on durable goods orders and weaker quarterly results from Boeing and others added to concerns about the pace of the economic recovery.
The Dow Jones industrial average lost 40 points, or 0.4 to close at 10494.48 points. The SP 500 shed 8 points, or 0.7. The Nasdaq composite also lost 24 points, or 1...
Tuesday was a true slopfest of relatively low volume confusion as it appears that the U.S. stock indexes move toward the resistance areas as I explained in the Sunday video. As reported by IBD, NYSE volume was actually up by 10 from the previous day, but NASDAQ volume lagged which might explain the weakness in tech stocks yesterday. The reversals were nonexistent and with price action as listless as it was, it should be no surprise. One thing is important to note: Short resource ETFs and short resource nation stock ETFs like Brazil for example are showing bullish reversals. It is not impossible that we could continue to see this action as there seems to be lingering strength potentially happening to the dollar as the Euro seems to be approaching a resistance level and a double top in this last rally versus the dollar. Materials prices seem to be under assault as traders, business people, and economists wrestle with whether or not the world is entering a second dip in a double dip recession.
Stocks lost steam in the second half of the day, after a big drop in consumer confidence offset betterthanexpected profit growth from DuPont, UBS and others. After a positive start to Tuesday, technology and consumer stocks were hit the most after the release of economic data on CCI.
The Dow Jones industrial average added 12 points, or 0.1. The SP 500 lost just over 1 point. The Nasdaq composite lost 8 points, or 0.4...