The U.S. stock market opened significantly weaker today after weakness in global markets over night, only to rally in the last couple of hours after General Motors reported that sales in June were down only 8% vs. an expected decline of 19%. After the automaker reported sales, the stock market took off, lead by the tech stocks, particularly Apple, which closed up over $7 on the day.
The market was also aided by Crude Oil failing to hold its earlier gains. After testing new all time highs again today, Crude actually closed slightly lower. However, Wednesday is a new day, and the weekly supply report will be reported as usual at 10:30 am ET.
The market was certainly due for a bounce today and was looking for any excuse to rally. Furthermore, the beginning of the month and the beginning of a new quarter are typically seasonally favorable times for the market to rally due to new investment inflows to mutual funds. Also, the few days before a holiday also tend to be favorable to the market. With these conditions in place, and likely low volume, it would not be surprising to see a sizable move up in the next couple of days.
With this in mind, the likely bias over the next couple of days should be to the upside, so look for some stocks due for a nice bounce!
Good Trading!
Scott Cole
www.bestdaytradingstocks.com
www.kungfutrader.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment