The stock market today maintained it's uptrend with gains on all four major indexes all on higher volume. While the S&P 500, the Dow and the NYSE Composite all rose on higher volume that volume was lower than the 50 day average volume. The NASDAQ meanwhile rose on volume that was higher than the 50 day average volume. It was good to see the strength on that index. The news today was about the Federal Reserve easing monetary policy. I'm not exactly sure but if the Fed prints money that makes the dollar worth less. If the dollar is worth less, it might push the indexes higher just to maintain it's true value. I think that this is a good sign for the overall increase in the market indexes.
A day like today is easy to see exactly what happened because all indexes were up, and so was volume. Since the market is in a confirmed uptrend, I'm watching for distribution days that indicate institutional selling. I didn't buy any stocks today because yesterdays increase in the indexes was on low volume because of the holiday.
The NASDAQ was one of the stronger indexes in terms of volume in the stocks market today.
The first thing that I do everyday is check the market indexes. This is also the first information available from IBD. The charts of indexes are on the homepage on a 20 minute delay. Next comes the Big Picture column and then the IBD TV Market Wrap. Later in the day the actual paper is published and I take a look at the How's the Market page.
Because the market is still in an uptrend, it's still a good time to look for stocks. Keep an eye on your stock screens for opportunities that might emerge.
All in all, it was great to see the market go up. Keep an eye on the market each day. It can quickly turn.
EmoticonEmoticon