logo
  Join        Login             Stock Quote

Shorts Ran For Cover as Stocks Run Higher on Lower Volume

 May 18, 2009 06:17 PM


Lacking any economic catalysts to begin the week stocks started the day off gapping higher.  Volume tracked lower for much of the day indicating institutional players were sitting on the sidelines staying away from the action.  It appeared the action was driven by short-sellers covering their positions.  It was certainly disappointing to see volume come in lower on such a large percentage move on the indexes.  At this point, a day with gains is nice but at some point we need accumulation to support this uptrend.

Price and volume action is the most, the most important action to consider on the exchanges.  The next is seeing how leaders are acting.  Leaders are found  in the IBD 100 and IBD 85-85.  Normally, leaders emerge rather quickly from market corrections.  However, this correction was quite severe and from past severe market corrections leadership may take months to form.  It should come to no surprise that this market is lacking IBD leadership.  At some point, for this uptrend to continue the IBD 100 and  IBD 85/85 indexes must be  leading this market. 

[Related -ArcelorMittal SA (ADR)(MT): Steel Stocks about to Get Red Hot]

There were some positives today as we did see leaders have an excellent day.  A few of them found support with volume.  A clue that there is institutional support for these leaders.  We are on top of them here at Big Wave Trading and are ready to take advantage of these leaders if they begin to breakout.   These leaders will run and show is Monster Stock gains.  Not only will they be Monster Stocks but they will be the tell when the market begins to stall out.  Junk-off-the-bottom have led this market up to this point but for this uptrend to continue any further we'll need to see the IBD indexes lead.

[Related -Express, Inc. (EXPR) Q2 Earnings Preview: Out of Style]

Be sure to check in later for further updates!

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageSix Stocks that Could Outperform in the next 90 days

Earlier today, Goldman Sachs put out its list of the 50 stocks that Matter Most. It’s a list of the 50 read on...

article imageFoot Locker, Inc. (FL) Q2 Earnings Preview: Running Past the Street View

Foot Locker, Inc. (NYSE:FL) plans to report financial results for its second quarter ended August 2, 2014 read on...

article imageRoss Stores, Inc. (ROST) Q2 Earnings Preview: Could Be Better Than Expected

Ross Stores, Inc. (NASDAQ:ROST) will announce its second quarter 2014 earnings results on Thursday, August read on...

article imageGameStop Corp. (GME) Q2 Earnings Preview: The New Masking the Old?

GameStop Corp. (NYSE:GME) will report earnings results after the market closes on Thursday, August 21, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.