Well readers, we had a big up day in the markets today and it seems like the bulls are back in charge. Let's have a look at the S&P chart to make sure.
We went right through the 1085 resistance level today, now marked as support. Well, the bears certainly lost control yet. Coming first is the resistance at 1100 followed by the big one - MA(50) at 11.08. Until the MA(50) is overcome by the bulls, I would still put the bears in charge. What is the one thing that is conspicuous by its absence ever since the present rally started last week? Yes, you guessed it right - Volume! So, I would recommend keeping an eye on the volume. It would be tough to overcome MA(50) on this weak volume. Also, the markets are not overbought as of now but another day like today, and they probably would be. I will keep an eye out for that and update you readers if or when it happens.
Personally speaking, apart from the first five minutes after the market open, I didn't get a chance to see the markets until noon. And it was pretty frustrating when I finally did see the markets! Why?? Well, most of the stocks in the extensive watchlist I posted yesterday, which can be seen here, were up 5-6% by noon. Making use of my newly acquired patience skills, I decided against chasing any of these stocks here. I am yet to have a look at how these stocks closed and will come be back with an updated watchlist sometime later tonight.
I did make some trades though. I got out of my RDN position at 7.84 in the first five minutes of the day, for a profit of 10.4%. Not bad for a position I opened late on Friday. I was afraid it would fall heavily today as a stock in the same industry, PMI, reported horrible numbers in the premarket. RDN did go down till 7.50 in the pre-market, so I was glad to sell it at 7.84 early in the day. It turns out it held up rather well and closed at north of 8. No regrets though. I made the best decision I could have with the information I had at that time.
I also started a position in MTG at 6.70, and later doubled the position at 6.86. It seems to be close to a breakout here and I will post its chart in the update later tonight. I am also still long NEP and LCC.
Hope all you readers had a profitable day today and were able to make money off the watchlist. See you folks later tonight!