Stock trading and stock investing:
Few comments on the earlier post which was made during the stock trading session earlier today (It is now the eve of Tuesday November 09, 2010 stock trading session):
1. The US dollar has strengthen (but not at the same rate as it did the last three days).
2. The stock futures are trading lower, which suggests a weaker open in the stock stock market, which would be consistent with the remarks in the latest post (copy is below).
3. The reports on the economic calendar are generally not market moving reports. Therefore is the market were to rise, it would be less likely that the rise would be fast. The stock market does not however need reports to fall fast as profit taking, and stop loss orders could be enough to maker prices move fast.
4. The dollar can however move and affect the stock markets, and it movements is also affected by other news such as news related to other currencies.
5. The major next market moving report will be on Wednesday at 8:30AM (in premarket). Therefore the stock market might position itself tomorrow to allow for major movement in either direction depending on the outcome of Wednesday's economic calendar news.
Below is a copy of the stock market post made earlier today.
Stock investing, and stock trading:
As we noted in yesterday's stock market spot (see copy below), the stock market has been generally weaker today. It broke the low of the prior trading day, and so far stock prices having difficulty to rise. While the indicators and averages in daily stock market price charts are rising, there are potentially some dangers. If the stock market were to rise before eventually retreating, the sp500 index price pattern seems to anticipate sellers around 2% higher from the current stock market prices. The 24 days moving average is around 1185 area, which places it at 40 points lower than current stock market prices which are around 1225. The 2% higher prices is around 1250. If we look the situation from the perspective of position traders, the stock market might be in a situation where the down side risk at the present time might be in an area where the expected rewards are probably less than or equal to the risks, which would not be a good situation for immediate stock investing. In addition, while the stock market has been remarkably resilient particularly in the last two days with a rising dollar, there can are however be limits to market resiliency. It is therefore not surprising that certain hot rising stocks have been having difficulty to rise today. This has not been limited to individual stocks, and not to today stock trading session. for instance The leading EFT sector in the stock market has been the Nasdaq-100. One may note that the Nasdaq-100 index has been trading essentially flat over the last 5 days or so.
The current conclusion seems to be that stock market investors might be anticipating a limited upside potential, and a rising risk to the downside. It is therefore not unreasonable to expect that such stock investors and stock traders might wait for a retreat to consider buying, or might wait for the passage of time so that current prices would become better in terms of parameters such as risk, reward and probability of success.
If the hot rising stocks experience difficulty rising, the weaker stocks would find it even harder to rise, and might lose in such stock market environment. Weaker stocks might also be targeted by short stock sellers, which can make the supply of stocks higher than what it would have been should such short stock sellers delay their selling decisions.
A stock screener gave us a list of stocks that have a negative return on equity, and that are trading below their 200 moving average, with a reasonably liquidy. Such stocks might be what stock short sellers look at when they consider building their short selling stock lists. A list of stocks that passed the criteria in the stock screener is below.
REVU Princeton Review Inc.
EEE Evergreen Energy, Inc.
RDN Radian Group Inc.
PCBC Pacific Capital Bancorp
COMV Comverge, Inc.
EPCT EpiCept Corporation
SUF Sulphco Inc.
XOMA XOMA Ltd.
GSI General Steel Holdings, Inc.
DRL Doral Financial Corp.
PMI PMI Group Inc.
CLWR Clearwire Corporation
KRY Crystallex International Corp.
CYCC Cyclacel Pharmaceuticals, Inc.
YRCW YRC Worldwide Inc.
MVIS Microvision Inc.
EXEL Exelixis, Inc.
HGSI Human Genome Sciences Inc.
SNV Synovus Financial Corp.
EXH Exterran Holdings, Inc.
GRS Gammon Gold, Inc.
DNDN Dendreon Corp.
OXGN Oxigene Inc.
PHH PHH Corporation
ANPI Angiotech Pharmaceuticals Inc.
CYTX Cytori Therapeutics, Inc.
JOE The St. Joe Company
OPXT Opnext, Inc.
CWTR Coldwater Creek Inc.
WL Wilmington Trust Corporation
AFFX Affymetrix Inc.
CEDC Central European Distribution Corp.
PPHM Peregrine Pharmaceuticals Inc.
X United States Steel Corp.
LEAP Leap Wireless International Inc.
VRTX Vertex Pharmaceuticals Incorporated
SVU SUPERVALU Inc.
MNKD MannKind Corp.
ALKS Alkermes, Inc.
JNY Jones Apparel Group, Inc.
LYV Live Nation Entertainment, Inc.
RF Regions Financial Corp.
BP BP plc
ARNA Arena Pharmaceuticals, Inc.
LVLT Level 3 Communications Inc.
PVTB Privatebancorp Inc.
NOVL Novell Inc.
SYNM Syntroleum Corp.
VVUS VIVUS Inc.
AONE A123 Systems, Inc.
RRI RRI Energy, Inc.
ZION Zions Bancorp.
ELN Elan Corp. plc
ANDS Anadys Pharmaceuticals Inc.
THQI THQ Inc.
PVA Penn Virginia Corp.
IRM Iron Mountain Inc.
HAFC Hanmi Financial Corp.
BCON Beacon Power Corporation
CPST Capstone Turbine Corp.
SNSS Sunesis Pharmaceuticals Inc.
WAL Western Alliance Bancorporation
ALXA Alexza Pharmaceuticals Inc.
S Sprint Nextel Corp.
MI Marshall & Ilsley Corporation
MAS Masco Corporation
USG USG Corp.
CLGX CoreLogic, Inc.
DYN Dynegy Inc.
RAD Rite Aid Corp.
RYL Ryland Group Inc.
CRBC Citizens Republic Bancorp, Inc
GDP Goodrich Petroleum Corp.
CIEN CIENA Corp.
CLNE Clean Energy Fuels Corp.
MWA Mueller Water Products, Inc.
JAG Jaguar Mining Inc.
BPZ BPZ Resources, Inc.
OSG Overseas Shipholding Group Inc.
ERTS Electronic Arts Inc.
GSIC GSI Commerce Inc.
PHM PulteGroup, Inc.
DXCM DexCom, Inc.
XRA Exeter Resource Corporation
GMXR GMX Resources Inc.
CRK Comstock Resources Inc.
BAC Bank of America Corporation
ACOR Acorda Therapeutics, Inc.
ENER Energy Conversion Devices, Inc.
AMLN Amylin Pharmaceuticals, Inc.
CTIC Cell Therapeutics, Inc.
DSCM Drugstore.com Inc.
VMC Vulcan Materials Company
PDC Pioneer Drilling Co.
QTWW Quantum Fuel Systems Technologies Worldwide Inc.
PEIX Pacific Ethanol, Inc.
HERO Hercules Offshore, Inc.
BQI Oilsands Quest, Inc.
BANR Banner Corporation
FBP First Bancorp
SGMS Scientific Games Corporation
SVNT Savient Pharmaceuticals, Inc.
DPTR Delta Petroleum Corp.
MFC Manulife Financial Corporation
HOV Hovnanian Enterprises Inc.
BIOD Biodel Inc.
NGBF New Generation Biofuels Holdings, Inc.
OCNF OceanFreight, Inc.
ALTH Allos Therapeutics, Inc.
SOMX Somaxon Pharmaceuticals, Inc.
STEM StemCells Inc.
JTX Jackson Hewitt Tax Service Inc.
XNPT Xenoport, Inc.
MELA MELA Sciences, Inc.
XSEL Xinhua Sports & Entertainment Limited
CHRS Charming Shoppes Inc.
DSCO Discovery Laboratories Inc.
IKAN Ikanos Communications, Inc.
WEST Akeena Solar, Inc.
AIB Allied Irish Banks plc
ROIAK Radio One Inc.
FCEL FuelCell Energy Inc.
VRML Vermillion, Inc.
Stock trading and stock investing: