Buyers Will Have A Chance To Steal The Trend
Jason CimplSeptember 1, 2010
The market scorched higher today. Buyers pushed the market through resistance at 1065 and moved it higher for the rest of the day. Volume increased and the rally was broad based with advancers crushing decliners by 5 to 1. Europe had huge gains today as well, and tomorrow will be a big day for bulls.
The move today in the U.S. follows bullish activity abroad overnight. Economic news was not spectacular, but the market held onto gains. This morning the ADP report showed a 10,000 decline. The analysts expected 13,000 jobs to be added in August after 42,000 last month. Later in the morning an ISM report improved to 56.3 from 55.5 in July and ahead of the 52.9 analyst expected. The market soared higher after that announcement and stayed near those highs all day.
Today was a powerful bullish session. The bulls were able to take back 1065 resistance and challenge the critical 1085 resistance area. The next major step to confirm a new rally is underway and will close above 1085. As noted in previous alerts, 1100/1115/1132 are also resistance levels of importance. Oil is a concern, but the leadership from technology and the decline in the dollar were significant bullish aspects.
Tomorrow more data is revealed in the morning. Factory orders and productivity will be the big ones to focus on. Productivity for the second quarter is announced before the bell, and it should dictate the open. Then, on Friday, nonfarm payrolls come out. Analysts expect 120,000 jobs to be lost in August. ISM Services is announced after the opening bell on Friday and is expected to drop to 53. Volume should be higher the rest of the week and buyers will have a chance to steal the trend.
The Chart of the Day
Expedia (Nasdaq: EXPE)(CHART)
was up 7% today.
The stock broke out of a flag today. Volume increased, but it could have been
higher. The target out of the flag is $28.50, which is 15% higher from here.
The big test remains at $24.85 resistance. The stock had challenges taking
that price out in April and earlier this month. The market is hot, and now is
the time for this stock to hit new highs. Volume needs to pick up if it is
going to hit my target. The buyers will protect today's open, and stops
should be placed below that spot.
Watch List
The TradeMaster Daily Stock Alerts' watch list was higher
today, much like the market.
Leading the way were big gains from Netlist (Nasdaq: NLST), Power One
(Nasdaq: PWER) and Abercrombie (NYSE: ANF).
