Author Topic: June 3, 2010  (Read 1357 times)

Offline DRobinson

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June 3, 2010
« on: June 03, 2010, 08:11:24 am »
June 3, 2010

With yesterday’s price/volume movements in the market, we have technically entered into a confirmed uptrend.

It was interesting to see the higher volume on the NASDAQ but lower volume on the S&P 500 and DOW. This relative disparity in volume suggests that we will see the NASDAQ outpace the other indexes, going forward.

Market uptrends that start in June have a horrible record of holding up for very long. So even though we are holding long positions, we will be very cautious in this market.

Historically, the early days and weeks of a new uptrend see the greatest percentage gains with new leading stock emerging. So far, this appears to be the case with this most recent technical break out.

There are very high expectations for tomorrow’s jobs report (released at 5:30 AM PST tomorrow) and those high expectations could set the market up for a disappointing day. If we see a sell-off materialize (assuming volume is lighter than today’s volume), we will use that as a buying opportunity unless we see the market undercut it’s recent lows – which would be a technical break down of the new uptrend that just started.

The correction the market underwent in May and the ensuing rally that has just begun, is classic “text book” market action. Let’s hope the market continues to follow these predictable patterns.

Have a profitable day.

This material contains the opinions of the author but not necessarily those of Beverly Highland Capital LLC and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.