Distribution Day for the Market

Today was a distribution day, as the market sold off on higher volume. It doesn’t necessarily mean that the rally is over though. Overall, volume this week has been below average.

On Sunday evening, I posted a weekly chart of the S&P 500, which showed a potential double bottom pattern forming. If we looked at the daily chart, it is showing a complete double bottom pattern with handle. But as I mentioned last night, the S&P 500 is now below the 50 MA again. If the S&P 500 can’t hold at this level, then we could see a significant move lower. However, if it does hold, we should see a continued rally. So keep a close eye on what happens here.

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One stock from the watchlist triggered today, it was MDR. Like a lot of stocks today, it was very choppy. It broke out in the morning, and then took some heat shortly after, but rallied for a modest gain before pulling back below the entry point.

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TITN, a pick from the watchlist that had a huge day on Tuesday, returned below its entry point today on heavy volume.

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I HATE giving money back to the market. I have learned to take most, if not all profits on the first day, especially in this market. When the bull returns, I will consider holding longer.

Some stocks appear to be resting for a big move up. If the market does move higher from here, I will be watching these closely:

Trade Ideas for 03/28/08

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These are trade ideas for educational purposes. Just because a stock is listed here, doesn’t mean it’s necessarily a buy when triggered. Use your own due diligence. If you decide to trade these, watch volume and market action to determine if it’s a good buy. Stops and targets are not listed. Use your own discretion.

Good luck and good trading!