Major Move Expected Tuesday
The market declined once again today, but it recovered off the opening lows to finish even on the day.
Last week we speculated on a down Monday, but a quick recovery back up to 1085 support. The market made it's way back to 1085 after a negative open, but it could not get above 1085 by the close. Sellers continued to dominate momentum, but the bears are weakening. Today, the bulls had a falling dollar on their side. Also, advancers beat out decliners by about 2 to 1. The bullish reversal was diminished by low volume and the lack of a late day rally.
The biggest day of the week is tomorrow. The market will have to absorb housing stats, PPI, industrial production and capacity utilization before the trading begins. There is plenty of room left to the upside, and very little room left to the downside. We have trades setup based on the reaction of the market tomorrow, but we lean towards a positive start. Bonds made a fresh high today, which does not bode well for the bulls. Additionally, copper trades at $3.26 - our must hold bullish support.
The Chart of the Day
China Wind (Nasdaq: CWS)(CHART)
finished the day 1% higher as volume recorded 1.5 times normal.
The stock has been on our watch list for months as emerged from a wedge
pattern that began with a high volume gap day in May. The stock broke to the
upside from the wedge, but has yet to pick-up positive momentum despite a
high volume break-out.
Recent price action looks bullish. The stock trades above the 20/50DMA and
volume is increasing. RSI has held 50 and MACD is on a buy. The
stock reported earnings today that came in better than expected. That
fundamental news may be the catalyst that takes China Wind back above the
sturdy $5 resistance.
Watch List
The
TradeMaster Daily Stock Alerts' watch list was higher
today.
Leading the way higher were Raptor Pharmaceuticals (Nasdaq: RPTP)
General Moly (NYSE: GMO) and Rino (Nasdaq: RINO).
Send comments anytime editor@trademasterstocks.com
