Stocks Manage Mixed Gains

The headline number, the Dow Jones Industrial Average, up 131 points, or 1.33%, suggested a big up day for the market. But, the Nasdaq Composite was up barely .5% and the Dow Transports barely eked out a gain at all. Additionally, today's gains were on declining volume compared to yesterday.

Generally speaking, the price trend in the market is still up, but there are warning signs that this market is getting tired. As I mentioned yesterday, day traders should start considering the short side, especially if the tape indicators are weak during the day.

Today's chart of the day is HNI. The stock gapped up strongly at the open, and held steady for the next hour, before resuming its upward strength. Patient day traders could have traded the opening range breakout, or a pull back into support after the breakout. The stock trended higher for the rest of the session. Have a look at the chart below.

Scott Cole
www.bestdaytradingstocks.com