Monday, May 18, 2009

Stock Market Update - May 18, 2009

Today was a big move up. If you read last nights blog ... we told you here that it could happen over the next few days and the next two weeks before the end of May. The only question right now is how strong of a rally are we going to see ... time will only tell. The total Dow Jones US Total Market had a net inflow of cash for the day of $1.2 billion and the NYSE had a 93% up volume day. After days like this one ... I would not be surprised if the market gives some back on Tuesday ... but I wouldn't make the bet. Total volume still remains a question. We did have a accumulation day for the Dow. Meaning today's volume was up in price and it was greater than yesterday's volume which was down in price. The S&P, NASDAQ and the Transport indexes did under perform from a volume standpoint. Not a good sign when price was stretched so much in one day.

Here is a chart of the US Dollar ETF. I think its all going to come down to this ... which direction is the dollar going move. If this ETF moves up a large amount ... the market will move down and it is possible that we will see a rally in gold. Check out that the ETF for gold today ... it scored the largest inflow of cash of any stock of over $91 million. Gold moved down in price today if you missed it. Also, the S&P 500 inverse ETF also was listed third today with cash inflow of around $17 million. Something to be watchful for ... this just might signal after today's large move the market might be ready for a rest.

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