Monday, April 27, 2009

Stock Market Update - April 27, 2009

The market gave back some of its gains from last week today. The net outflow on the DJ Total US Market was just over $1.14 billion today. The sector with the largest outflow of money was Financials ... again. The volume traded was light ... not a distribution day when looking at volume. We had a 77% down volume day (All market data was obtained from The Wall Street Journal). Also, the money flow on the Dow has changed directions again ... down this time.

I wanted to point out what I use from a timing standpoint. I wait until the daily Dow charts have readings of oversold ... then I use the 60 minute chart to "time" my purchases. Note I call it "the zone" in the 60 minute chart above that is boxed in blue. I try to wait for a high probability trade and for the market readings to measure an oversold condition here on the 60 minute chart before I pull the trigger. You can see other times when this has been the case on the above chart. I'm not advising anyone to do this ... I'm just giving an example of what I do to time the market.
Remember use your stops.

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