The market direction outlook for today was for stocks to continue to grind higher. I did not believe that stocks would shoot up much higher on Tuesday but I did think there was enough underlying strength to get us another positive close for the day. We are back to the same problem as before the unemployment numbers. What will the Fed do. With the meeting next week investors are back worrying about whether the Fed will commence tapering. It goes without saying that this see-saw attitude among investors is typical of why investing is so difficult. Stocks in general are an emotional commodity for most investors. Today is a great example.
Facebook Stock (FB)
Stocks like Facebook are climbing higher despite the nervousness of investors. Facebook Stock is up 3.15% today albeit on low volume, but still the stock has recovered nicely from its recent sell-off. There is no doubt in my mind that the Put Selling I started last week in Facebook is certainly going to work out well.
Twitter Stock (TWTR)
Twitter stock has an incredible day yesterday and again today the stock is up big. In the case of Twitter Stock volume is increasing. Both of these stocks are not along as stocks like Groupon are back jumping. Both Facebook Stock and Twitter Stock are worth considering at present for Put Selling. I will have an article up shortly on both.
Walmart Stock (WMT)
Meanwhile many big cap stocks such as Walmart Stock, Target Stock, Procter and Gamble Stock, McDonalds Stock, Kimberly-Clark Stock are down today as investors take profits.
What we are seeing is investors rotating out of stocks. Many investors are leaving a variety of big cap stocks that have had a very nice run-up and looking for profits in some of the tech names that lately have been under pressure, such as Groupon, Twitter and Facebook, to mention just 3.
While it seems evident investors are nervous, they are certainly not giving up on stocks but taking profits. While this is understandable, it is somewhat disappointing as it shows that investors did not like yesterday’s market and obviously feel that taking profits at this stage in the rally is well warranted.
Market Direction S&P 500 Intraday For Dec 10 2013
This morning the S&P opened lower hit 1804 and tried to rally. Three times the 1804 level held and finally the S&P rallied back. By 11:00 AM the rally looked weak and the market drifted back lower and broke through 1804. By the mid-afternoon the 1804 has become resistance. What I am hoping now for is that the 1804 can be held for a close.
Market Direction Into The Close for Dec 10 2013
Into the close I am opeful the 1804 level will be challenged again and possibly the S&P can hold that level. The Dow is back having trouble with the 16,000 level. The trouble markets have with these big round numbers is amazing and it is continuous since the bear market of 2008 to 2009.
Meanwhile the NASDAQ is holding on the best here as many of its stocks are continuing to rise as investors shift their focus into some beaten up tech names.
For the close today I am not expecting a positive result but as explained, I am hoping 1804 will hold for the S&P. Overall though it is disappointing to see this weakness just two days after Friday’s big rally.
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