The stock market followed yesterday’s losses to the downside amid continued concern regarding financial stocks and a weak housing market, along with some inflation concerns. PPI data came out hot this morning, more than double the expectations, and at the same time it was reported that new housing starts declined to 17 year lows. As a result, stocks opened lower, but really did not extend the losses much further. However, volume was a bit higher than yesterday.
Due to today’s follow through losses, it now appears that the markets are gearing up for another re-test of the lows. Clearly, the Dow and S&P 500, burdened by weak financial stocks, will reach their lows far more easily than the other averages.
Our lone Ultimate Stock, AXYS, crashed and burned through its initial stop loss today, unable to hold up under the weight of a down market since it broke out last week. In this market, such trades should be taken with less leverage than when it is clear that the we are in a Bull Market. As a result, we are back to 100% cash.
Scott Cole
www.theultimatestocktradingsystem.com
Tuesday, August 19, 2008
Monday, August 18, 2008
Monday doldrums for Stock Market
The U.S. Stock Market ended Monday with sizable losses, pressured by financial stocks once again. Over the weekend, Barron’s printed an article in regard to Fannie Mae and Freddie Mac that did not sit well with the market. As a result, all of the major averages were down over 1% today. On the bright side, volume was light, and although 1.5% losses on the averages used to be a big deal, in the present market environment, it is not. Therefore, I am not convinced that the rally off of the July lows is over. The Russell 2000 and Nasdaq remain above their intermediate term moving averages. Also, sentiment appears to still be somewhat negative, in spite of the rally off of the July lows. Now, if we have another day of losses on Tuesday similar to today, or 25 point down day in the S&P 500 with a 45-50 point down day in the Nasdaq later this week, then it is likely that another re-test of the Bear Market lows is required. Stay tuned.
Our single Ultimate Stock Position, AXYS, was off modestly on very light volume today, and remains almost $3.00 below its breakout price of $76, but still quite a bit above its stop loss level.
Stay with the trends!
Scott Cole
www.theultimatestocktradingsystem.com
www.kungfutrader.com
Our single Ultimate Stock Position, AXYS, was off modestly on very light volume today, and remains almost $3.00 below its breakout price of $76, but still quite a bit above its stop loss level.
Stay with the trends!
Scott Cole
www.theultimatestocktradingsystem.com
www.kungfutrader.com
Thursday, August 14, 2008
Stocks shrug off inflation news
The U.S. Stock Market shrugged off a weak open caused by a strong CPI inflation report, indicating an annual rate of inflation of 5.6%. Stocks opened at their lows and traded higher for the balance of the day, although closing a bit below their highs. Once again, tech stocks led the Nasdaq to the strongest gains, with the Russell 2000 not far behind.
The Dollar was again a big winner, particularly against the Euro. Treasury futures showed relatively little movement today, in spite of the strong inflation reports. That report was balanced by continued weak jobless claims data.
Yesterday’s rally in the energy futures proved to be a one day wonder as gravity continues to pull on Crude Oil. Corn continued its recent rally, but Soybeans and Wheat stalled. Metals were a bit lower today.
Our one Ultimate stock had a difficult day today, as was somewhat expected due to yesterday’s price pattern. After a weaker open AXYS trended higher for most of the day, ending well off session lows. We continue to monitor a few other stocks that are poised to be added to the portfolio on future rallies.
Stay with the trends!
Scott Cole
www.theultimatestocktradingsystem.com
www.kungfutrader.com
The Dollar was again a big winner, particularly against the Euro. Treasury futures showed relatively little movement today, in spite of the strong inflation reports. That report was balanced by continued weak jobless claims data.
Yesterday’s rally in the energy futures proved to be a one day wonder as gravity continues to pull on Crude Oil. Corn continued its recent rally, but Soybeans and Wheat stalled. Metals were a bit lower today.
Our one Ultimate stock had a difficult day today, as was somewhat expected due to yesterday’s price pattern. After a weaker open AXYS trended higher for most of the day, ending well off session lows. We continue to monitor a few other stocks that are poised to be added to the portfolio on future rallies.
Stay with the trends!
Scott Cole
www.theultimatestocktradingsystem.com
www.kungfutrader.com
Thursday, August 7, 2008
Stocks Fall, but Dollar posts 5 month highs
The stock market ended with some sizable losses Thursday after some weak earnings reports, and a continuing higher trend in jobless claims spooked the market. However, the Dollar managed to rally to hits highest high and highest close since February, suggesting its downtrend is finally over. Over time, this should help to dispel the inflationary worries, and keep interest rates from rising too far, which will be bullish for stocks. In fact, Treasuries were off to the races today as well, as 10 Year Notes closed at their highest price of the last couple of weeks, and appear set to test their July highs.
As such, even though today was not a good day for stocks, there underpinnings developing that should be bullish for stocks in the long run. A weak dollar has helped with our exports, but ultimately, a stronger dollar will keep interest rates from rising too much, and may allow the Fed to ease rates if the economy becomes too weak.
Since the market purged the big winners of the year among the coal and energy related stocks, there are just a handful of stocks that have emerged as potential candidates based upon our Ultimate Stock Trading System. As of this writing, the system remains in 100% cash. Once this current rally ends, or goes through a consolidation period, a couple stocks should provide the low risk opportunity we seek to enter a new position. In the meantime, these sizable daily swings are providing good daytrading opportunities. We offer a daytrading e-book that may be found at www.bestdaytradingstocks.com.
Good Trading!
Scott Cole
www.theultimatestocktradingsystem.com
www.kungfutrader.com
As such, even though today was not a good day for stocks, there underpinnings developing that should be bullish for stocks in the long run. A weak dollar has helped with our exports, but ultimately, a stronger dollar will keep interest rates from rising too much, and may allow the Fed to ease rates if the economy becomes too weak.
Since the market purged the big winners of the year among the coal and energy related stocks, there are just a handful of stocks that have emerged as potential candidates based upon our Ultimate Stock Trading System. As of this writing, the system remains in 100% cash. Once this current rally ends, or goes through a consolidation period, a couple stocks should provide the low risk opportunity we seek to enter a new position. In the meantime, these sizable daily swings are providing good daytrading opportunities. We offer a daytrading e-book that may be found at www.bestdaytradingstocks.com.
Good Trading!
Scott Cole
www.theultimatestocktradingsystem.com
www.kungfutrader.com
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