Thursday, June 25, 2009

Stock Market Commentary: Decent Recovery

A number of positives has given bulls something to play with. For the Nasdaq, on-balance-volume and the +DX/-DI managed bullish crosses as the index regained the 20-day MA. Volume also climbed in line with accumulation.


The gains in the Dow were decent and were enough to push past the 50-day MA but not enough to break the 200-day MA.


The Russell 2000 had the benefit of a declining 200-day MA and a recently Golden Crossed 50-day MA to bounce off. There was even a bull cross in the CCI to give bulls an additional 'buy' signal.


The under pressure Semiconductor index also did enough to regain its 50-day MA with a CCI 'buy' signal of its own; better stuff from this key recovery sector.


Today marked a key play for bulls. With key moving averages regained it's now up to bulls to push their advantage. Shorts will wait for momentum to tire before getting aggressive again which is unlikely until June highs are approached.


Enter to win the Trader's Business Plan prize of a free psych test and free access to the trading plan development program. Retail value $398

[1] Register at Zignals.
[2] Go to Charts and select a stock (you will be prompted to download Microsoft Silverlight)
[3] Click on the YourCall Icon


[4] Enter a Call by giving a stop and target price; make sure the Time Period is set to Short (month)
[5] Enter as many calls as you like up until the end of June; these can be long or short signals
[6] Send me your Zignals Userid so I can track the calls made (declan-at-zignals.com) or post it in the comments section of this post. In your email make reference to the competition.
[7] The Zignals member with the stock giving the highest return from either a target hit or expiration after 22 trading days will win the prize. Only stocks or FX prices listed on Zignals qualify for entry (no pink sheet stocks). The announcement of the prize winner will be made at the end of July.

Good luck!


Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

 
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