Buyers Returned
TradeMaster Market Forecast | August 24, 2010 4:45pm EDT
The market moved lower today and volume increased. Decliners
beat advancers by nearly 5 to 1. Today we hit my target for the SPX one day
early. The bulls, and accumulation activity, were visible at Tuesday's low.
Buyers have returned. As the market gapped down to our turn price, we covered
half of our shorts.
The bears gained strength from a big decline in home sales this morning. The
market was able to rebound off the low's and small caps looked strong today.
I will be watching crude and small caps closely tomorrow. We are long BGZ and
TZA from last week. I will not risk those gains.
The sellers have momentum going into durable goods tomorrow morning. While
that release of economic data is key, the oil inventories will also be a huge
component. Oil has performed unusually poorly over the past month.
Crude is trading at a huge support area that would spark a massive rally if
defended.
The Chart of the Day
EXACT (Nasdaq: EXAS)(CHART)
may have the potential to double.
The stock has traded in a range of $4 to $5 for the past year. It momentarily
sank below $4 and quickly moved back in the range. Volume has increased on
each positive day over the past three months. Someone is buying this stock.
The sellers may be washed out and looking at a five year chart; this company
can move fast. Shares need to find support at $4 and take out $4.75 next
month. Volume should increase on the move higher, which will likely result in
an upside break-out past $5. In the near term, RSI needs to take back 50.
MACD turned bearish today, 200 DMA is must hold support $3.95.
Watch List
The
TradeMaster Daily Stock Alerts' watch list was lower
today, much like the market.
Leading the way for bears was Ctrip.com (Nasdaq: CTRP), which is near my
first target of $38.
Send comments anytime editor@trademasterstocks.com
