Thursday, July 19, 2012

Market Update 7-19-12

It looks like we are on another run today.  The bulls are charging even before the bell has rung.  IBM’s numbers are up and tech made a monster run yesterday.  I knew it would happen eventually because many of those stocks were undervalued according to my stock value calculator.  As always a rising tide floats all boats so many stocks were up yesterday.  Look for another run today at least in the morning.  I don’t like buying when stocks are high so I’m going to wait and see what happens in the first hour.  According to Day Trading Rock Star usually there’s a 9:50 reversal of the trend in the morning.  

I did get into WMT yesterday because it got real low and I was just tempted to get in.  It didn’t have the same strength as it normally does but hopefully with this bull market WMT will charge back up to its highs.

I may look to get back into MCD if it pulls back.  The technicals look good, I just want to see the 20 day moving average move closer to the 100 day on the daily chart.  It’s also trying to break through a resistance line. It’s been testing it for 5 days so I won’t feel confident until it breaks through.

MSFT has been grinding higher and has almost established its trend.  It is about to break through an important resistance level.  I’ll wait till it gets through that level and pull back then I’ll be more confident about getting in.

CTDT the speculative stock last week fell off big time yesterday.  I only had a small position in it so I’m fine but it just goes to show there are folks out there that will bang the table on a penny stock to drive it up and then take all the money and run.   The best and only way to play the market is to know the company and its value and then buy the dips, watch it rip, and sell the tips.

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