February 21, 2008

Market opened strong today, however, investors quickly took profits at the open and let the bears take control for the remainder of the day. Overall we saw losses of over 1% on average. A regional manufacturing report from the Philadelphia Federal Reserve gave the bears the ammo they needed to once again fade the strong opening. This is becoming a trend, and the more it happens, the more eager and willing the bears will be to pounce on every kind of rally there is. So to overcome this, the markets are going to need overwhelming buying power to counteract the selling that is taking place.

The strong openings are providing great opportunities to fade the market, and make sizable returns on a day-trading basis.

Let’s review the charts…

NASDAQ once again tested the upper channel line but it was unable to garner the necessary buying power to break resistance. We are closing in on the January lows, and it won’t be too long now before the bulls get the opportunity to show what they are made of.

CLICK HERE FOR THE NASDAQ CHART

S&P for a brief period showed that it might break the downward trend line. However, the attempt was foiled by the bears and instead the market got constant selling in return.

CLICK HERE FOR THE S&P CHART

We have now launched the Stock Screener, and it offers traders and investors alike with numerous trading ideas and opportunities for every type of market. Check it out by Clicking Here.

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