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Economic Data Dominates Morning Trade as Stocks Close Lower
By BigWave_Trader on November 24, 2009
Wall Street was able to withstand the onslaught of economic data to finish near the highs of the day. GDP revision to the downside was not a surprise as many expected the revision to come in at 2.8%, but the story was how 2.8% achieve. With consumer spending down .5% it was mostly government borrowing boosting GDP figures, thus giving traders chills about the economic situation. As stocks began to slide lower buyers did step up and support the market at the lows of the day. On the day, we witnessed positive price action for a holiday week.
Preliminary volume figures show NYSE volume down on the day with the NASDAQ slightly higher by 1.8%. Technically speaking, the NASDAQ Composite showing a 31 basis point loss on the day with higher volume notched a distribution day. However, the support the index received at the lows makes it real tough to have this one actually count as professional selling. It appeared as if professional support had more to do with today’s market than selling.
If you were so lucky (heavy sarcasm) to watch today’s market you were more than likely bored with the action. A few market leaders were able to find nice support at the lows with the opportunity to add to your position. Other than that, there wasn’t much to do other than watch a low volume market move along.
Dull markets can be deceiving in either direction. It is best sometimes to be totally in cash or at least some cash as ammo to take advantage of some opportunities. I would find it very hard to blame someone for simply stepping away from the market, but they would have to know they would be missing a few nice opportunities. We certainly have been able to spot opportunities and have taken advantage of them. However, you aren’t missing HUGE gains, but gains nonetheless. I for one do not like the tiny returns from my core account.
Tomorrow we get another host of data, but I would expect Wall Street to cut out early for Thanksgiving.
Enjoy and have a Happy Thanksgiving.
Posted in Commentary