Another decent day for the bulls. The markets started the day lower but there was no doubt who was in charge for most of the day. Consolidation days like days are bullish indeed. But what happened to the volume??!! If last week the volume was low due to it being a long weekend, what's the reason this week?? Wall Street still on vacation??!! I don't blame those guys. You gotta spend all those bonuses somehow!! :)
The S&P edged higher mainly due to the financials. A day of solid gains for the financials. I hate to be the party pooper here but I do see a strong negative MACD divergence developing in financials here. See for yourself. Now, I am not saying go ahead and short the financials but I would be cautious in opening new long positions in financials here. And there is never any harm in booking some profits.
Personally speaking, I am pretty pleased with the way I traded today. That's because I pretty much didn't trade at all today!! I got out of RDN at 17.15 for a little more than breakeven. I knew I wouldn't have time to watch the markets until noon and I didn't feel comfortable holding something that has gone up so much recently when I couldn't keep an eye on it. Nothing beats mental peace!
After that I didn't trade at all. Seeing the markets head pretty much nowhere, I just sat back and relaxed. As the regular readers of this blog know, one of my goals for this quarter is not to overtrade. To let things come to me instead of trying to make things happen. Its been three days into the quarter and I have stuck to it so far. We will see how long it lasts. :)
I will be back later tonight with a stock I really like for the next few days.
Take care and good luck!