Market Update

Today’s market produce no real follow through to the upside or downside, creating melted candles on the daily and most of the indexes. I suspect a lot of traders and money managers are seating on the sidelines waiting for tomorrows jobs report; which is expected to beat the estimate on the street. The Nasdaq seem to be the index out of the main three to lead the markets higher with money flowing into the technology sector. The volume in the markets has been below average and without the financial and commodities participating it will be difficult for the markets to get legs to the upside. My overall bias on the market is still bearish.

Coming into today I wanted to short stocks such as Halliburton (HAL) and AK Steel (ASK) because of the strong down trend on the daily charts. The markets gave a good opportunity to short these stocks as it was not able to make a new high during mid-morning trading. This created a swing high and a break of the lows into yesterdays trading range. After breaking the lows the continuation did not follow through to the downside but hopefully you were able to take advantage of s 15 min ORB on stocks that show weak order flow on the daily and hourly charts for a momentum move. Trading at the moment seems to be momentum plays most of the time, so you must take profits quicker and have lower expectations on your trading ideas.