August 9, 2010 Market Recap

The market moved very little today, but it is gearing up for a larger move. 10,700 appears to be resistance. It is having a hard time closing above that point. Also, volume was lighter than average for a while. A larger move should be happening in the next couple of days.

The S&P500 is also consolidating between the 1120 and 1130. Because of that I have submitted a call order on the SPY. If the S&P crosses 1131, the I will buy 2 113 SPY calls. If the S&P crosses below 111.9 then I will buy 2 SPY 112 puts.

The NASDAQ is also consolidating. There should be a larger move in the market in the next couple of day. Once it breaks, it should go up or down quickly.

August 6, 2010 Market Recap

Today I am going to focus more on the S&P500 and Nasdaq, and not even deal with the DJIA. It is important to note that the futures went down due to unemployment reports. Yet, both the S&P and the Nasdaq went down, touched the trend line and proceeded to go back up to the 150 day moving average.

The S&P needs to go above 1,130 or it will break below the trendline proceeding lower again. The S&P has resistance there from June 21st as well, which is slightly higher than the 150 day moving average at 1122. If the S&P gets tighter in the next couple of days, it might be good to use SPY to order a put and a call one at 1130 and the other at the trendline. I will do a little more analysis today and tomorrow to see what I want to do.


The Nasdaq is very similar to that as well. It also went down and touched the trendline. I am still concerned that the Nasdaq and S&P are not growing like the DJIA. Shows weakness in the economy and not a true rally.

It appears that the bear market may be over. With the DJIA above the 150 day moving average as well as a new trendline going up. It has pulled back a couple of times to form the new trendline. The only concern is that the S&P500 and Nasdaq are toying with the 150 day MA. Also the S&P 500 has not passed over the MA so there is more strength in the large caps and as much strength in the small caps.

July 21, 2010 Market Recap

Once again, all three markets bounced off the down trendline. When the whole market is going down it is not a good time to be in the market. Also notice the 150 and 200 day moving averages are getting closer and closer together. The 150 trendline has not started to turn downward as well for all 3 of the indices. We will want to see a cross of the trendline as well as a cross of the 150 and 200 day moving average before getting back in. Will continue to monitor.

July 16, 2010 Market Recap

I mentioned in my blog yesterday that all the markets were hitting the downtrend line. As well as the 200 day moving average. I was anticipating a move today. I actually set a trade to buy to 110 calls for SPY if the S&P 500 crossed 1100. It had been hitting resistance and I thought it would go up if it broke that resistance. It didn't break the resistance. I had also thought about a 108 put on the SPY. I would have done well with the 108 put. Just didn't get is set. I probably could have made 25% on the trade just today. I will continue to watch the market especially if it looks like it is going to set up a good move.

Market Recap July 14, 2010

Over the next couple of days, there will be a decision in the market. Presently, all three marke the DJIA, S&P 500, and Nasdaq, are all right at the 200 day moving average. If it crosses both the 200 and 150 day moving average the market will go back into a bull market. If it fails to cross the 150 day moving average, the market will continue lower.

I am finally getting back to blogging. Hopefully I can stay with it this time.

The DJIA, S&P 500, and the NASDAQ Composite are all below the 150 day and 200 day moving averages. None of them have crossed above the trendline. Notice the trendline is also right at about the 200 day moving average in all three cases. The market has not broken out of the bear market yet that started April 26, when all three indices hit the high.







I am also watching 13 stocks and investing different ways with the following stocks.
Aeropostale Inc. ARO
Amedisys Inc. AMED
Catalyst Health Solutions, Inc. CHSI
Chipotle Mexican Grill CMG
Cognizant Technology Solutions Corp. CTSH
Deckers Outdoor Company DECK
Devry Inc. DV
Ezcorp, Inc. EZPW
Gilead Sciences, Inc GILD
Intuitive Surgical, Inc. ISRG
Medifast, Inc MED
Noble Corp NE
Quality Systems, Inc. QSII

Most of these stocks are classified as being undervalued based on Stock 2 Own
This website analyzes stocks based upon fundamental analysis based upon "Rule #1 The Simple Strategy for Successful Investing in Only 15 Minutes a Week!" by Phil Town.

I will be looking at each of these stocks in more detail based upon fundamental and technical analysis over the next week.