Tough Day
The morning was rough. The indices
were all down big, and Europe followed us down after the negative jobs data.
Volume finished above normal levels. Also, decliners beat advancers by over 5
to 1. The selling is for real. The SPX 1085 support has been broken and oil
is below last weeks lowest price. The worst is likely over for the week,
although I do not see much upside now that 1085 is resistance.
The jobs data was bad this morning, but the real concern was from the
Philadelphia Fed. A survey of manufacturers revealed deterioration in the
economy. The data supports uncertainty and weakness from manufacturing.
Business activity went negative for the first time in over a year. That data
conflicts with the Fed's data which showed a 1.1% increase from industrial
output in July.
Once again the selling picked up before the close. Buyers are either out of
money or waiting for another round of selling. Neither is bullish. For a fast
scalp we played a quick bounce off 1071, but we are mostly cash after 1079
broke down this morning. The worst is over for the week, but the upside is
capped and limited to Thursday's high.
The Chart of the Day
Raptor Pharmaceutical (Nasdaq: RPTP)(CHART)
may be ready to blast higher.
The stock broke out of a one month flag pattern last month. After the break
out shares moved lower and retested channel resistance which became support.
The volume was light on the break out, but it picked up last week after
shares bounced off $2.50.
Shares are trying to move past $3.25 resistance, and the recent dojis suggest
the break out attempt will be successful. The next strong area of resistance
is another 15% higher at $3.64. The long term target for the flag break out
is $5, which is doable. Volume needs to pick up for shares to hit that
target, but these moves happen quickly and usually when the market is not
open.
Watch List
The TradeMaster Daily Stock Alerts' watch list was lower
today.
Leading the way higher were Rino International (Nasdaq: RINO) and
China Power (OTC:CPQQ) from the short list of
winners.
Send comments anytime editor@trademasterstocks.com
