Helicopter Ben Chops Rally
The market did not build on yesterday's positive enthusiasm.
In fact, today's action was exactly the opposite. The market gapped higher,
but 1085 resistance held the bulls back. Going into the week I anticipated
trading would be difficult and that the market would be trapped firmly
between 1045 and 1085. The bears reminded buyers that 1085 will be a
difficult price to take.
The real declined occurred during a speech given by Ben Bernanke. Economic
conditions are weakening but the Fed remains at ready to do what it takes to
expand GDP. Investors didn't believe him, and sent stocks lower into the
close. Volume was average today and decliners outpaced advancers by 3 to 1.
With the gap up this morning, most U.S. finished the day with a dark cloud
candle. That is a reversal pattern, which threatens the rally from
yesterday's lows.
The Chart of the Day
ANTs Software (OTCBB: ANTS)
(CHART) may have hit an important bottom this month.
In May the stock on great volume ripped through $1 resistance and tripled.
Also, consider those gains compared to the declining market. Since the high
volume break past $1, the stock declined on lower volume to, you guessed it,
$1. I expect the stock to find support here for a few reasons.
First, over the past month, volume increased, but price has yet to break
below $1. That indicates those same buyers from May are jumping back into the
stock again. Secondly, Fletcher International made another investment as part
of a $10 million agreement which allows them to buy shares at $1.25. The fact
that this fund is highly interested in this company at $1.25 should translate
into a price move up to at least that level.
I took a mini position in the stock on Wednesday and will sell it for about
$0.25 higher.
Watch List
The TradeMaster watch list was mostly lower today,
similar to the market.
Recently, my TradeMaster Daily Stock
Alerts' received an update to a 3
stock commercial real estate special report. The last time I gave out a
report like this 2 of the picks doubled in five weeks. A similar situation is
unfolding now, and you can find out more by reading the report
right here.
