Monday, September 8, 2008

Markets Up Big in Early Trading

10:52 am ET: DJIA +229...SPX +21...Nasdaq +17...RUT +11...SOX -0.78...Oil +$0.76 Each of the broad indices are higher this morning. The Nasdaq is the weakest and the reason why is clear when looking at the weakness of SOX in early trading. There is no strength in the semiconductors in early Monday trading. If this doesn't change, the question becomes how long can the Nasdaq rally without the support of the semis? Futures have faded from their pre-market highs but are still up significantly from Friday's close. Stay focused on price action as it relates to the key short term resistance R1/R2levels from Thursday's large black candle. Markets have been open for more than an hour and all nine sectors including energy are trading higher. Early Monday Sector Leaders Financial - XLF +3.96% Consumer Discretionary - XLY +3.50% Industrial - XLI +2.75 Early Monday Market Action Moving Up: BIDU, GS, STRA, IBM, AMZN, MS, PCLN, LAMR, NRA, LAMR, COH, ESRX, KMT, NDAQ, CELG, MA, SINA, SCHN, V Moving Down: CF, FSLR, FNM, FRE, POT, CNX, MEE, ANR, X, MOS, BTU, FWLT, AGU, CLF, BUCY, SOHU, MON, RIMM, SNDK, HANS, LCC, AMLN

3 comments:

Anonymous said...

How do you interpret outside day candles in downtrending stocks? For instance, today RIMM, AAPL, GOOG, ORCL, CF, FWLT, DRYS are all doing this. Where can you set a target? Where can you establish entry/exit points?

Anonymous said...

Dave,

All the bullish news driving the market. Is today's price action merely price fluctuation?

Dave Johnson said...

Barbara,
They are failed rallies in a down trend, in essence a bear flag or resistance bounce down.

Dave

anonymous,
It is price fluctuation until it breaks through resistance.

Dave