Tuesday, March 17, 2009

A Rally On Wall Street

Nice rally today, just when I thought the underpinnings might give wa,y the bulls grabbed their horns and charged. I twittered about an hour before the rally started that the bulls better take the hill soon or things could get ugly in a hurry. It pulled back on light volume ( all the rallies have been light volume) and turned around quickly.

Advance-declines were 4 to 1 positive on New York and 3 1/2 to 1 positive on Nasdaq. Up/down volume was 10 to 1 positive on New York on total volume of just under 1.5 billion. Nasdaq traded about 2.1 billion and had about a 12 to 1 positive volume ratio. The bulls couldn’t ask for much more, especially the way it closed. We’ll see if there’s a follow-through tomorrow. Levels we’ll be keeping an eye on tomorrow are overheard resistance around 1200 on the NDX. We’re about 8 points from there. The SPX has yet to take out the 778-80 area, closing at 778 today. If that’s taken out the next overhead resistance is around the 800-05 zone on the SPX.
Steel got torched, energy rallied and solar is just a waste of time as a sector. I had a really good day, oddly I was short as usual, I was lucky with some FAZ shorts and caught AXP a couple of times. But, the fun on the short side ended in the late afternoon. Let's see if the bulls can follow through or acquiesce to the bears. The volume sucks. Traders market still.

3 comments:

rmjm said...

Joe, Thought you would like this article my daughter sent me today, Russ M, maybe Post it Subject: Fw: Socialism vs Capitalism


> Think about this...
>
> An economics professor at Texas Tech said he had never
> failed a single
> student, but had once failed an entire class.
>
> The class (students) insisted that socialism worked since
> no one would be poor and no one would be rich, a great
> equalizer. The professor then said, "OK, we
> will have an experiment in this class on socialism."
>
> "All grades will be averaged and everyone will receive
> the same grade so no
> one will fail and no one will receive an A."
>
> After the first test the grades were averaged and everyone
> got a B. The
> students who had studied hard were upset while the students
> who had studied
> very little were happy.
>
> But, as the second test rolled around, the students who had
> studied little
> studied even less and the ones who had studied hard decided
> that since they
> couldn't make an A, they also studied less. The second
> Test average was a D.
>
> No one was happy. When the 3rd test rolled around the
> average grade was an F.
>
> The scores never increased as bickering, blame, name
> calling, all resulted
> in hard feelings and no one would study for anyone else.
>
> To their great surprise all failed. The professor told them
> that socialism
> would ultimately fail because the harder people try to
> succeed the greater
> their reward (capitalism) but when a government takes all
> the reward away (socialism) no one will try
> or succeed.
>
> ...Ok that's enough, stop thinking again...

upsidetrader said...

rmjm

powerful thanks man

joshua said...

good story

About Me

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I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.