Stocks Consolidate in Light Trading

The stock market consolidated as traders re-assessed the Fed's announcement after the rate cut yesterday. Although the market averages were down today, most stocks actually closed up on the day, according to statistics provided by Worden Brothers (they produce the TC2000 software I use to scan my stocks).

Overall, it was an uneventful day, although I did not like the fact that Apple closed sharply lower after another downgrade this week. There remains concern regarding the health of CEO Steve Jobs, since he is not giving the keynote address at the upcoming Macworld conference. Furthermore, sales of Apple's desktop computers have been weaker than expected.

The top five performing industry groups today were Information Technology, Resorts and Casinos, Trucking, Semiconductors and Silver.

Below is a solid day trade occurring in EBS. Heading into the session, we notice a solid set upon the daily chart indicating potential direction for the stock today. The stock breaks out quickly and holds at higher levels before trailing off later in the morning. Early in the afternoon a buy the dip opportunity presents itself and the stock rallies for the rest of the day. These are the kinds of opportunities day traders should look for!

Scott Cole
www.bestdaytradingstocks.com