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Wednesday, August 31, 2011

Stock News, Stock Picks and Investment Opportunities

Hello my Investors, Traders and Readers friends. Yesterday, the market closed with slight gains. The DJ-30 went up 0.18%, the SP-500 increased by 0.23% and the Nasdaq Comp. grew at 0.55%. These small advances, however, shown great volatility hide during the day. We could say that the stock market was divided in two. In the morning, the announcement of the data about consumer confidence. These data showed a significant fall and the market dropped sharply. The indices fell nearly 1.10%. However, later. made public the minutes of the last meeting of the FED. These documents reveal the willingness of the FED to continue to support the economy in order to avoid a slowdown. The market went positively interpreted and immediately took the north road, reaching almost to the Nasdaq up 1.10%.


From my point of view, this reveals a great nervousness among investors. It seems they are waiting for any signal to attack or run away.


This is very important because it can be expected to continue very volatile market right now.
On the other hand, the volume of shares traded is still very low. This does not give grater consistency to the rise that is experiencing. Rather, it allows you to continue assuming this rise is temporary and part of a correction within a bear market.


It is also important to mention the market has entered in the critical zone. That is, where will face the most important resistance levels and will define, finally, the direction to take the market. In the following chart, you can see the position of the DJ-30. It is currently in position to break (or not) these levels. But it also is close to the next level of resistance and the SMA50 days.


For the market to take a path up, the DJ-30 (and also SP-500 and Nasdaq) should break these three levels of resistance and increase volume of share traded. As I mentioned yesterday, this could be defined in the following days. Please click on the chart to enlarge.



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