well, as i predicted on Friday, we had a down day today (see my last blog post). I used it to buy, mostly sticking with the 2x leveraged QQQ. The QQQ’s are definitely holding up the strongest in this market while SPY and IWM is sticking more in a range bound trading environment. All the indexes bounced around between their moving averages today which held for support. IWM is looking rather weak, but with the strength of the QQQ’s, We should have some upside in the coming two weeks to enjoy.
This continues to be a news driven market and the financial situation in Europe is and will continue to move the market. Even intraday we still see wild swings immediately after major announcements related to Greece, etc.
Volume was very light today which is what you want to see on a down day, since it implies that there was not large selling pressure occurring … little conviction with the bears.
One very bullish item, I am seeing a number of leaders breaking out to all time highs over the past few days with strong volume. Leaders … lead the market … and are the first to move higher, so this usually translates to strength in the market over the next few weeks. Stocks like AAPL, CMG, AMZN, ULTA, AZO, LULU all broke out nicely today. This by no means implies we are out of the woods as we still have a long way to recovery, but we need to see leaders performing well for the market to follow, and seeing this certainly bolsters my bullish stance.