Thursday, September 2, 2010

Nasdaq at important levels

The markets traded in a narrow range for most of the day which was bullish, and made a move higher in the last hours, which makes it a very good day for the bulls. The S&P closed above the MA(50) while the NASDAQ closed right below MA(50), making this the level to watch out tomorrow.

Of course, tomorrow will probably be all about the job number. Keep in mind that if the market doesn't react much or absorbs bad numbers fairly well that will be a bullish sign, especially after the run up we have had in the last couple of days. And if this does happen, chances are we might even see a rally heading into the close tomorrow, as traders would not like to head into the long weekend short a market that is absorbing bad news well and has room to the upside.

Personally speaking, I got in and out of SOLF at 11.09 and 11.34 respectively for a 2.25% gain. I am pretty disappointed with the way I traded this. The stock made a high of 11.83. Patience doesn't come to me naturally either in life or in trading but I should have done a better job in maximizing my gains on this one. I took a position in it again at 11.55 on a successful test of support at 11.50. This is a smaller position as it was meant to be a swing trade rather than a day trade.

I will be back later with the chart of the day and some stocks from a sector that I like here.

Take care and good luck!

P.S.: For Chart of the Day, click here.

For the latest watchlist, click here.

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