I mentioned yesterday here on twitter that the markets seemed like they were gearing up for a big move. I just had the direction wrong and never thought Obama could move that many people to jump back in the markets, but it is what it is. Oh, and I also included my twitter feed on my site (right sidebar near the middle) for those who haven’t embraced that technology yet, so you can see what I see when I don’t have the time to do a blog post.
Anyhow, before I talked about the markets, click on the chart ATC. I mentioned this stock 3 days ago and it’s up over 50% today. That is unreal. I think I’m going to start focusing more time on Canadian equities because lately I’ve been huge % gains on those stocks that have been showing up on my scans. Tell me that one of you out there was smarter than I and picked up some shares of ATC….
Back to the general markets. Huge day with volume accumulation that can’t be ignored, but it’s still too early to tell if this will lead to something more than a small bounce. The last time the Nasdaq had this much up volume in May, it resulted in nothing more than a small bounce. The pressure is on the bulls to keep this market moving higher and there is a lot of resistance along the way.
One thing that really surprised me is that my timing system barely budged today. Sure, it improved, but it was closer to a buy signal last Friday than it was after the close today. I basically spent the day away from my desk because it was obvious we were going to close near the highs and I didn’t want to get persuaded by my emotions into doing something outside my trade plan. My scans aren’t showing quality breakouts at this point and that is one reason I’m suspect of today’s move.
The bottom line is that until we get a buy signal on my timing system, I’m going to continue to hold my reduced short positions.
