It was in many respects a Ho Hum~ day. Dow up 44. Yawn. S & P up 10. Yawn. No market shattering news to be found. The best thing that can be said for today's action is that it was an "up" day. There were of course some stocks with nice gains. I hope you had a few of mine on your list this morning. PANL +5.98, BBBY +1.20, CERN +2.05, MAKO +3.32, PSMT +1.93 , ALXN +1.06. Nice charts all, and nice gains today. But the candlestick that grew on today's chart shows a market that is indecisive, unsure and unwilling to pick a direction. Today's candlestick looks a bit like a "plus" sign. No real gain here. And volume was "just another day". All are indicators that the even the market is confused! But note that volume has begun to level off. Perhaps a tell of sorts, but nothing to hang our hats on just yet.
Remember........Always remember.......... that Price and Volume are the kings of indicators. At the end of the day not much else matters. And with hundreds of other indicators out there, none tell more than price and volume. The Holy Grail of indicators just does not exist. And this is what makes the chart so honest. At the end of the day, all that really matters is price.
But I digress. Where is the market headed? The chart says we are just waiting for the right catalyst, then down we go! Down to Dow 10,600 and most likely to 10,000 after to test that magical psychological number. When will the drop come? Dunno. What will the event will be the catalyst? Beats me! But the bear flag is intact and looking weaker and weaker as the days pass.
So I leave you with this well remembered nursery rhyme.
Jack be nimble,
Jack be quick,
Jack jump over
The candlestick.
And when you trade tomorrow...........Be nimble, be quick, and be ready to jump in or out of the trade as the market dictates.
CURRENT MARKET TRENDS
Long Term - Down and sideways, trying to build a base.
Medium Term - Sideways with down bias
Short Term - Up (But watch for potential reversals)
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