The market finally managed to work itself off oversold condition today, closing tantalizingly short of MA(200). In fact, close to the end, the momentum with the bulls was such that another 5 minutes and they would have probably taken over the MA(200) level. This level - 1104.44 - is obviously the one to keep an eye out for tomorrow, followed by further resistance at 1110. The volume was low today, but then what else can one expect close to a holiday weekend. Nothing surprising there.
The strategy still should be to go for short (time-scale) trades rather than swing trades. The market still lacks direction and holding overnight still carries a more-than-usual amount of risk. Take profits when you can. Personally speaking, I had time to follow the markets the entire day today and had a nice day. I was on a lot of margin for pretty much the entire day (the thinking was to make hay when the sun shines and I felt pretty comfortable being in such heavy margin as I knew it was only an intraday thing), taking partial profits in PAL, MTG close to the end of the day. I am still holding some long positions overnight. However, I plan to head into the weekend mostly in cash.
Here are a few stocks that I like heading into tomorrow, provided the bulls are able to sustain the momentum.
RDN - Had pointed this one out on Tuesday. Congrats to all those who played it!
MTG - Got into this today. Took partial profits close to the end of the day.
ORLY - Had pointed this one on Tuesday too. Long this since yesterday. At 52 week highs.
NR - Oil play. Nice bounce off MA(50).
Take care and good luck!
P.S.: Forgot to put up a chart of PAL - my "gut feel" play from 2 days back. Both PAL and SWC were up over 10% today and look good to run some more as Palladium seems to be bouncing back.
P.S.: Forgot to put up a chart of PAL - my "gut feel" play from 2 days back. Both PAL and SWC were up over 10% today and look good to run some more as Palladium seems to be bouncing back.
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