Market Watch for 7-6-12

Well I couldn’t help myself…I got back into WMT.  The way the options move is the main reason I can’t stay away from WMT.  My other options positions just move too slow and WMT seems to respond to the market moves a lot quicker.  This could be for any number of reasons, but I’m guessing it’s because of volume.  

DNKN started to make a breakout today and the technicals look good for it to continue tomorrow.  I wanted to get out of my ATT position but it went below my profit level and I will just hold onto it to see what will happen.  Hopefully the fact that the dividend date is passed won’t affect it too much.  

The main thing to watch tomorrow is the jobs data and the consumer price index which both come out in the morning.  Hopefully they have good news for us tomorrow and the market rallies up. It may seem like the market is a virtual Las Vegas slot machine right now but that’s because there is so much data and news to absorb.  Normally the technical set ups will work more consistently but there is a lot of noise throwing them off.  If the fundamentals of the company are sound and the stock looks good from a technical standpoint, then regardless of market conditions the price will respond eventually.  It’s just a matter of time.  So we just got to be patient and let the waves develop.

This is also the reason why it is important to be investing in individual stocks in this type of market.  The ETFs and sector stocks are too generalized to really respond to this type of market volatility.  Individual stocks will move because they are good companies and are well positioned.  Sometimes there are a bunch of stocks in a sector that are not healthy companies and they are dragging down the sector.  While there may be one good stock that is in that bunch, the ETF doesn’t have a chance if the other stocks offset that good company.  Stick with the individual stock approach for now until there’s more stability.