August 30, 2011
Uncategorized
By Geoff Bysshe
Ok, so when I said the markets would have to get above R1 to be bullish, I was not anticipating they would all gap open above R1!
Despite all the excitement in price action the volume was incredibly light. This should not be a surprise given that the East coast of the U.S. is still recovering from a massive storm and it’s the pre-Labor Day week. However, as I said in yesterday’s Focus List, don’t expect that low volume will mean low volatility. A perfect example of this WYNN. If you put the Long Focus List in HotScans you’ll see WYNN had the lowest relative volume yet with Keith’s help today in the Live trading room is was a home run O.R. reversal trade.
I’m not trying to say volume doesn’t matter. Please don’t read that in what I’m saying. Volume is all relative. This week is a lightly traded week, big volume should be treated with extra respect and low volume should be viewed as the norm. Unfortunately, however, low volume does still leave stocks susceptible to sudden and exaggerated price moves so be careful.
With all the market watch charts closing above the Aug. 17th high and having strongly stacked pivots, the game plan for tomorrow is pretty straight forward. Long until S1 is broken confidently.