Investors Business Daily (2/26/11) take on Friday's market
posted on
Feb 27, 2011 12:41PM
Edit this title from the Fast Facts Section
I subscribe to IBD. The following is from this weekend's edition that I thought might be of interest as it discusses the overall US market this last week. I also like it because I can plug in all my stocks and see daily and at anytime during the day what the price and volumes are doing. IBD provides a % of the daily volume column so you can see at a glance (and without much thinking) if biggies are buying into a stock or selling out of it. If anyone knows of another easy way to determine volumes like that please let me know of the site as I am thinking of not renewing my IBD subscription. I have done well (at times) following the volume. (Below is an excerpt from this weekend's column)
"Stocks Leap In Dim Trade While Some Leader's Stall"
"Stock indexes Friday posted their first day of unanimous gains since two sessions of heavy selling earlier in the week.
Friday's action didn't look so strong under the surface. Lower volume suggested that funds weren't fully participating. And action among some leaders involved negative reversals and stalling. Stalling involves heavy volume without price progress. It points to funds selling into strength.
The uptrend remains under pressure. The market has notched four days of fast trade selling in the past 12 sessions. How should individual investors react? Let the uptrend prove itself before you buy aggressively. Defense should be No. 1. You don't have to dump stocks en masse, but lean on the side of protecting your capital.
With the uptrend that began in March 2009 near the two year mark, bear in mind that historically the market has a toughter time making gains after the first two years of a bull market following a major decline. Erring on the side of caution is wise after the big money has been made, even if you weren't the one making the big money. "