Tuesday,
The market corrects yesterday’s sell-off… We warned of this yesterday – low volume sell offs are as trustworthy as low volume advances. Congrats to our members who heeded our buy recommendation yesterday! That one was too easy J
The DJIA gained 266 points today; note this is greater than the 239 points lost yesterday – can someone say bullish engulfing signal? Today’s volume on the DJIA is also greater than yesterday’s sell off and that is an important bit of information. A quick study of the price chart shows we now have two ascending low points on the chart which represents the potential start of a new up-trend in the market… view chart to see the trend line in question. We may have a surprise summer rally on our hands!
The NASDAQ gained 55 points for the day, also a bullish engulfing signal of yesterday’s activity as well as a continuation candlestick pattern which is great for those stocks aided by the NASDAQ activity… like what we are holding in the
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (03) which tells us very little smart money went into today’s rally… this is not as telling as one might hope as we have several factors to consider here and therefore we must defer to the technical analysis of the charts to hold until further notice… It is possible that we are about to see a summer rally from now till Christmas which will catch a lot of traders off guard as summer is typically not an active trading session – this in and of itself could explain the low MPT Rating but we’ll have to wait and see.
As Always; Be Smart, Be Patient, & You Will Be Successful.