Market Outlook: Thursday 3/30/2006

[eliteG]

The market punched higher and broke through resistance on high volume yesterday.  Now we can get bullish but lets see some confirmation on this move before we buy everything in sight. 

Resistance is the high of this move yesterday(2344.67) and psych number 2350.
Support is 2333(breakout now becomes possible support), 2310, 2300.

[eliteG]

Gaps for Thursday 3/30:

[shawFund]

What is the usage for the gaps?

The market is really in bullish mode. Nasdaq broke out important resistance line today.

[eliteG]

What is the usage for the gaps?

The market is really in bullish mode. Nasdaq broke out important resistance line today.

Its important to know whats gapping in the market for two reasons:

1: To know whats hot/cold today
2: To fade the gaps.  Today the market gave great gaps to fade.  Fading the gaps is simply day-trading against the way the gap goes using certain rules.  The method is discussed more here: 

fading the gaps
http://www.3stocksonfire.org/trading/index.php?topic=575.0

[shawFund]

Good idea for day traders.

You said that you can get all the gappers from Yahoo. How?

Thanks.

[eliteG]

Well that gap list is from my Realtick trading platform.  I used to find gaps on yahoo from their stock news thing: http://finance.yahoo.com/mp as well.  Just look for the stocks in the news and you can find gappers that may setup for fading.

[JKN]

What is your take on the recent action of the NAS/Russell 2000/Dow Wilshire 4500 vs. the Dow. and S&P 500?  Any significance or just showing the strength in the small cap/tech sectors?

I am also looking for a top here soon, I am watching oil proces closely as its above $67 a barrel and its not summer yet.   I'm considering moving some of my 401K into cash.

JKN

[joet]

Hi G
Hope you see this on fiday AM...  Tall white candle, how much is too much, you like it on NTCS at 6% but not on PPHM at 16%...  Will you be adding to the NTCS position that you said you started on monday at 11.71? (buying in AM at market open on your last post???)

Thoughts on AOB and FTGX...

Thanx for the HOM advice i got out averaging 6.96 or so with a stop limit order on the last batch... very mixed reaction to earings after hours... down to 6.2 and rebounded to 6.75... i am hoping to buy baCK under 6 before the hurricanes begin     cheers Joe