Markets on Standby

Every August, the world's financial markets shift their attention from the centers of global commerce — New York, London, Tokyo — to a mountain valley in northwest Wyoming. On Friday, they will hear a speech by Federal Reserve Chairman Ben Bernanke.

Focus on Jacskon Hole, Wyo

Stocks on the move

Stocks on the move

Boring Action

Buyers and Sellers on strike.  There is absolutely no breadth in both directions.  AAPL is the only stock keeping the market alive with the  settlement against Samsung.  For some perspective on the market action click on the link below.

http://www.markets.fallondpicks.com/2012/08/daily-market-commentary-low-key-day.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FallondTradeHistory+%28Fallond+Trade+history%29

A few more good looking charts with upside potential

Stocks with upside potential

Trading stocks is an odds game. As always use proper position sizing and risk management when deciding to take a postion. 

Markets' resilience tested

The major market indices hit key resistance levels and reversed course today.  Today is the first major test for this weak rally.  So far this rally has lacked in breadth.  However, the market indicies were pushing higher lead by AAPL and GOOG.  Even the darling stocks AAPL and GOOG reversed course today.  AAPL and GOOG made all time highs before turning back.  However, some of the stocks I bought on this weak rally viz.  AMZN, TWTC, AFFY are all showing gains of 4% or more.  The goal is to not let the winners turn into losers.  Hopefully, today's action is a minor divergence from the continuation of this rally. 

Slow upward grind

The markets are grinding higher everyday since the big move on 08/03.  More like consolidating the gains. The large caps are clearly outperforming small caps.  Two notable big cap stocks making a move are AAPL and GOOG.  The market breadth numbers I track are gradually improving.  I would have like to see big buying move the market instead of a melt up kind of move.  As long as there is music we continue to dance.

Lack of Breadth - Small caps lagging

Lack of breadth doesn't bode well for the market.  Once leading stocks are all breaking down or stalling.  Market continues to be range bound.  A healthy bull market is accompanied by a large number of stocks making moderate upward advances in price. A weakening bull market is characterized by a small number of stocks making large advances in price, giving the false appearance that all is well. This type of divergence often signals an end to the bull market. A similar interpretation applies to market bottoms, where the market index continues to decline while fewer stocks are declining.