Stocks Pullback on Lighter Trade; A Very Positive Sign
Source: http://www.market-speculator.com/2009/04/28/stocks-pullback-on-lighter-trade-a-very-positive-sign/Posted on Tuesday, April 28th, 2009 | In Market Commentary
The swine flu dominated headlines as the new strain of influenza hit the world over this past weekend. Headlines read this flu outbreak would hinder the world’s ability to recover. News media did its best to strike fear into its viewers thinking this would start a pandemic. Subsequently the market opened much lower, but surprising to the bearish folk the market found support. Later on in the morning we even saw the major indexes in positive territory. The afternoon fade was met with support and the indexes finished off their lows but most importantly VOLUME was significantly lower across the board. Monday was a classic day of consolidation and a welcome sign to a healthier market.
One thing that is becoming more and more obvious to me is our down days in terms of percentage loss. Monday marked a day where the major indexes were NOT down 1% or more. I am noticing, we are getting smaller and smaller percentage losses when we pull back. Going back to September, generally speaking our pullbacks were on LARGE percentage losses and many times on heavier volume. A very good shift in market action and a positive sign for those who are long stocks.
Market Speculator
Last 5 posts by Market Speculator
- Quality Growth Stocks Lead the Way as Stocks Advance in Mixed Trade - June 2nd, 2009
- Re-Inflating the Bubble; Inflationary Pressue Lifting Stocks - June 1st, 2009
- Treasuries Begin Their Decline Striking Fear into the Stock Market - May 28th, 2009
- Follow on Twitter and Seeking Alpha - May 28th, 2009
- Sipping on a Cup of Coffee Deciphering Whether or Not The Stock Market is About to Make a Leg Down - May 11th, 2009
 About Market Speculator (http://market-speculator.com)
Market Speculator began his market career shortly before 9/11/01. The methodology he uses comes from the greatest stock market traders of all time; Livermore, Darvas, O’Neil, Dryfus, etc. Decision making is based on price and volume while stock screening is done by growth in fundamentals. Much like William O’Neil’s CAN SLIM approach to investing Market Speculator focuses on a narrow amount of stocks and lives by cutting his losses early. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.