The intra-day activity in this market is nothing short of wild. The Dow Jones Industrial Average has seen a couple of 100 point intra-day swings by the noon hour. Since that time there have been sell offs and light volume rallies bringing the major stock indexes right back up. There have not been light volume buy programs like this since mid 2008 when the market was in the middle of the credit crisis. Who is trading these markets for the bounces to be so robust? Has the ‘fat finger’ trader from the May 6, 2010 flash crash come back to play again.
It is rather amazing that the major stocks indexes are not down sharply lower today as spot oil is trading at $110.00 a barrel. The Middle East seems to be getting worst by the minute as Israel and Palestine have begun to fight again. Problems in Libya, Syria, and other nations in the region do not seem to be getting any better. Japan had another 7.1 magnitude earthquake earlier and we do not know how bad the already damaged nuclear reactors are. Portugal needs a bailout and Spain could be next on horizon. What else could go on in this world? It seems that everything except the kitchen sink has been thrown at this market and it still holds up and bounces back almost immediately.
As of 3:09 pm EST the Dow Jones Industrial Average is trading lower by just 39.00 points to 12,387.66. Traders must watch for resistance around the 12,400.00 level which looks to be the next important intra-day resistance area. Please use caution when trading in this environment intra-day as we can never predict the next major news event to cause a spike in either direction. The United States oil fund is trading at a new high for the year just above $44.00 a share. This would normally be a negative for the major stock indexes, however, it has not really seemed to matter over the past week. This is truly a market that does not want to decline.
Nicholas Santiago
InTheMoneyStocks.com
