U.S. stocks managed solid gains today, lead higher by the Nasdaq as far as the major averages are concerned. In regard to industry groups, the REITS and commodities showed significant strength today.
We also had our first breakout in months in a legitimate Ultimate Stock, but there are no other stocks that have the characteristics required by our Ultimate Stock Trading System at this time. At this time, followers of our system are advised to trade very cautiously, as we still must characterize this existing rally as a bear market rally.
For those traders that are seeking daytrades to the long side, the market is presenting much better opportunities to trade strategies that capitalize on large daily directional moves. Our daytrading system trades an opening range breakout type of strategy. A couple of today's big winners included WBD and WDC.
In other markets, the Dollar continued to make gains against the Euro and Yen, while the Pound seems to be putting in a solid bottom against most currencies. The Aussie$ and Canadian $ also showed more strength today.
Most commodities showed strength today as well. This likely explains the strength in the Canadian$ and Aussie$ today, and in the last month. It is interesting to see commodities and the Dollar rally in tandem, along with the stock market. Although many analysts appearing on CNBC do not see immediate economic recovery, the markets seem to be indicating a recovery appearing earlier in 2009.
Stay tuned!
Scott Cole
www.bestdaytradingstocks.com
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