Stock Market Bulls Jump in on Light Volume
Stock-Markets / Stock Index Trading Sep 04, 2009 - 08:10 AM GMTBy: Mark_McMillan
We continue to be patient with our positions moving slightly against us. The very light trading volume seen makes it difficult to believe in this modest move. Our BIAS is still bullish so we continue to monitor the market moves to determine whether we will be forced to move back into a long position.
We have also added the Merrill Lynch Semiconductor Holders (SMH) to our regularly featured Major Index ETFs. Note that SMH is exchange traded but is a trust, not a fund. We added it through reader requests since we regularly discuss the Semiconductors Index (SOX) as a leader industry for the broader market. Since we have no position at this time, we merely reflect current price in the table.
Trade Recommendations:
Take no action.
Daily Trend Indications:
- Positions indicated as Green are Long positions and those indicated as Red are short positions.
- The State of the Market is used to determine how you should trade. A trending market can ignore support and resistance levels and maintain its direction longer than most traders think it will.
- The BIAS is used to determine how aggressive or defensive you should be with a position. If the BIAS is Bullish but the market is in a Trading state, you might enter a short trade to take advantage of a reversal off of resistance. The BIAS tells you to exit that trade on "weaker" signals than you might otherwise trade on as the market is predisposed to move in the direction of BIAS.
- The Moving Averages are noted as they are important signposts used by the Chartists community in determining the relative health of the markets.
Commentary:
We have expected the major indexes to be flat or move slightly higher through this week. That has been the case thus far and we are patiently waiting for another leg down. With all our monitored BIAS being bullish, we have to be careful in this counter trade.
Looking at our short TLT position ($96.86), it moved back toward our entry price ($96.50) leaving us slightly out of the money. Keep your stop at $98.50. We will present our current long term portfolio in our more lengthy report this weekend.
We hope you have enjoyed this edition of the McMillan portfolio. You may send comments to mark@stockbarometer.com.
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By Mark McMillan
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