All the Major Stock Market Indices Closed at 2009 Highs
Stock-Markets / Stock Index Trading Sep 11, 2009 - 07:08 AM GMTBy: Mark_McMillan
All the major indexes, the Russell-2000, and the Semiconductor Index (SOX 325.82) all moved to new 2009 highs. We continue to monitor the SOX as the leader of this rally. Unfortunately, the Semiconductors holders which we regularly report on only move two cents higher, so there is a clear disconnect between this and the SOX.
The trading action we have seen is quite bullish but many of the indexes we follow are looking toppy. The bullish action can be maintained while the indexes look toppy as the major indexes and semiconductor index walk-the-band higher meaning that price is moving up along the upper Bollinger Band.
Our short TLT position stopped out at $96.00 for a $0.50 profit yesterday as a successful $12B auction of U.S. 30-year bonds moved prices significantly higher. We may choose to re-enter this trade at the next top.
Trade Recommendations:
None at this time.
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 will look for signs of topping action to try to profit from a reversal whenever that occurs. We will look to put on puts to enhance our returns if we get a clear reversal sign but we will inform you in advance of doing this.
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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