It's all about ADP
The market activity on Tuesday was uneventful, especially
after the moon-shot on Monday morning. Sellers showed up early in the morning
and volume was elevated. That high volume selling kept us out of the market.
The bears are defending 1130, no surprise. We expected that level to be
difficult Monday morning.
The market needs a catalyst to move above it and ADP change will do it.
Tomorrow should take the market out of the consolidation phase its been stuck
in for the past two days. Either the bears will recede back to 1150 and let
the bulls pass by, or the buyers will let the bears take the market down to
1100 before they support price. Energy held up very well today. Oil finished
another 1% up, despite the down market. I have mentioned before that energy
stocks need to be monitored closely to gauge the market strength. In other
news, the euro hit my target I set in May, my position has been sold, now I
wait for another chance.
The Chart of the Day
UFP Technologies (Nasdaq: UFPT)
(CHART) finished the day 6% higher.
We looked at this stock in my weekend
TradeMaster Daily Stock
Alerts' video. The
stock made a huge move, from $8 to $11.50, on high volume back in March.
Shares have backed down in recent months and traded in a range from $8.50 to
$11.50. Volume has been light, suggesting that few people are leaving its
stock.
In the weekend video I took a closer look at the strong reversal candle last
week at gap support. Going into the week short term traders were advised to
buy near $9 and sell near $10.50. For those with a long term horizon, I
suggest buying around $9 in anticipation of a move to $12 over the next few
months.
Watch List
The TradeMaster watch list was lower today, similar
to the market.
Leading the way higher were several of our Chinese stocks with 3% gains
China Argritech (Nasdaq: CAGC) Kandi (Nasdaq: KNDI) and
lastly Netlist (Nasdaq: NLST).
Send comments anytime editor@trademasterstocks.com
