The only thing we really got from today's session was that we didn't break below the 880 level on the S&P 500. Volume was on the light side so it is hard to tell if today's move up was the start of a new rally...or a rally before another move down. Remember what I said yesterday...we wanted stocks to be done falling and start to move up, but on higher volume. The good news for the bullish argument is that the VIX dropped significantly today, even though the market wasn't up today as much as it was down yesterday. The big drop in the VIX doesn't necessarily mean that the market will go up over the next few days. It just means that traders don't anticipate any wild swings ahead (up or down). Yesterday I told you to watch the agricultural chemical stocks. They had a big day today. POT, MOS, AGU, CF, TRA, IPI, and SQM all moved up nicely on higher than normal volume. There are a lot of nice bullish patterns in the energy sector. If the market moves higher tomorrow look at coal stocks...JRCC, PCX, BTU, ANR, MEE, FCL, or play the whole sector with KOL. You could also look at natural gas stocks (see previous posting for natural gas stocks). Technology stocks could also rebound if we start a new rally off of this support. Look at BRCD, LEAP, MVSN, PALM, CPWR, and AMZN (although it needs to get back up above its 50 day moving average. I also like CCK and GS.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment