Stocks started the day on a very high note, but ended lower on the day. The worst performing group was retailers. Since most of their material comes from China and China will unpeg their currency to the dollar, there is concern that their costs will increase. However, on a bright note, the volume today was lower than Friday so this doesn't count as a distribution day, but keep in mind that options expiration was Friday. The DOW did manage to close above the 200 dma also.
A quick word on $BIDU. It has consolidated and is firing on all cylinders. If we see a new high with some volume it is worth looking at.
Tuesday, June 8, 2010
This market has been very crazy lately. Very erratic. The follow through day of Thursday has failed due to the fact that the Dow undercut the previous lows although the Dow did close up today in heavy volume. Also, the Nasdaq did have another distribution day.
Anyway, I've included a chart to illustrate today's emotional roller coaster.