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Still At Mid-Channel; In The Right Direction June 27, 2014

Posted by Tom in Thoughts.
Tags: , ,

I’ll be doing a lot of writing shortly with the end of the month (client newsletter) and the end of the 2nd quarter on Monday.  So this will be to the point.


Interesting chart above.  Note that we did Close above the previous swing High back in early March (roughly the 4370 level) but it took a little extra effort last week.  What I found intriguing is the way big volume bar on Friday (orange circle).  I was watching the market near the close and it was interesting to see huge volume coming in during the last 5 to 10 minutes; that’s where the higher Close came in as well.

Normally that volume (effort) and only an average bar spread (ease of movement) would be “Bearish”, but since we’re at the end of the quarter, perhaps not.  The common phrase is “end of the quarter window dressing” where managers buy stocks that have already done well over the quarter.  They want to be holding the winners as they are reporting the portfolio to their investors.  Also, Monday is a holiday week (4th of July) in the U.S. so Friday afternoon was their last chance to get on board (vacation week).

Let’s see what happens after July 1, and even the following week, as many will that next week off.  I won’t.   🙂   With the prime summer holiday upon us next week will be a light volume week and perhaps a volatile one at that.

I’d say by mid-week watch for my monthly SRCM Client Report newsletter (posted under that tab here).  I’ll run down the quarter and also talk about how hedge funds are performing (hint: not all that well).  I’ll also include the Price Strength, Accumulation / Distribution and Sector Strength information; no need to do that now.

Have a good week and enjoy the holiday . . . . summers nearly half gone.      …………  Tom  …………


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