Besides the Nasdaq, the rest of the market finished lower for the day. While the pullback was a little heavy on the DJIA and the SP500 volume came in lower on the NYSE and the Nasdaq minimizing some of the damage. Despite the losses on the day, the intraday reversal left almost every stock in the two main short scans with big bullish tails. Those tails cause us to have no new short positions as nothing closed near the lows of the day. While we do go lower when we get above average volume what we do not get is any follow-through with more higher volume selling. This is good news for bulls as hopefully a meaningful rally can set up later on. For the bears, the lack of follow-through for now, pretty much ensures that no real huge gains are going to be made on the short side. We have to continue to wait for volume to return. This should definitely happen after Labor Day. That means we probably have two more weeks of overall lame action where the market just drifts a little bit higher and then drifts a little bit lower. Anything can happen but I am sure most traders do not feel the need to hurry back and catch an exciting market. On that note, I leave for Kaua’i for a week, on Sunday. I will be able to update the longs and shorts analysis but the introductions leading to the new longs and shorts will be short if the market doesn’t do that much that day (ie…lower volume, little price movement). There is one extended short position those with a lot of guts could take: ISRG. It is a bit extended to be considered safe here but it is breaking down.
new short positions: none
none
