February 14, 2008
Tough day for market players today, as stocks gave back nearly all of yesterday’s gains. The gains of the last few days seem to have been on speculation that Bernanke would give the market a bone to chew on. Instead, it was the usual commentary from the Fed Chief. Worried about a slowing economy and willing to cut rates when necessary was the essential framework of his testimony today. This wasn’t enough to please Wall-Street and as a result the market sold off continuously the entire day to close at its lows. The action today would allow us to believe that we should see further follow through tomorrow morning, barring any positive news developments. Therefore, keep your capital protected. Don’t buy stocks just because they look cheap, because they may yet get even cheaper.
Let’s review the charts…
After such a solid day yesterday, the market gave back all of its gains on increasing volume. We mentioned yesterday that we were overbought as a whole, and it was seen very clearly with the NASDAQ, as there was a lot of profit taking.
S&P struggled quite a bit today also, as the index bounced off of the upper channel-line and sold off on heavy volume.
We are currently working on adding a new feature to the website called the “Shareplanner Stock Screener”. We believe that this feature will give our readers more tools at their disposal and ideas for various types of stocks to trade and invest in regardless of the market conditions. Stay Tuned!