RSSRecent Volume Tells the Story
By Jim Slagle | April 14, 2008 | 5:33 PM | 0 Comments
I'm not going to bang the "Classic Monday Fade" drum as I have in previous writings, but today was another low-volume fade, coupled with the fact that the major indices are all back below key support levels, most notably, the 50-day moving averages. That being said, trading this market in the short-term is tricky and definitely a test of one's courage. Making it more challenging is a strong news week and the bulk of Q1 earnings on the horizon.
It isn't all lost however, there were small glimmers of leadership today. The bright spots were in Energy, Ag, and certain commodity related stocks, but overall market momentum has seemed to have hit a wall here. Not only was there an obvious hangover from the GE miss, import prices, and consumer confidence data from last week, but there was also little if anything to build on in terms of positive news.
I would like to give Jerry Slusiewicz props for pointing this out in last week in last Tuesday's article "Asleep at the Wheel" here on Green Faucet. Jerry wrote: "The last several trading days do not indicate that it will happen on this run. We may need one more consolidation to build up momentum for the big lift". Well, we've got the consolidation; now let's see if we can get the lift! I still believe it will take a significant fundamental catalyst, most likely in terms of upside earnings surprises to take this market significantly higher.
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