Brooksie’s Daily Stock Market blog: An edge before the market opens.

George Brooks |

The most important thing the stock market did yesterday was to bounce back steadily following a sharp sell off shortly after the market open. This suggests buyers are there on dips.

Today: Solid open with a chance the DJIA gets up to12,190 (S&P 500: 1310). Odds of a rally failure after a big pop are even – Careful !

While yesterday’s market action was impressive and today is off to a good start, I think there is risk in chasing stocks here. Nasdaq stocks may be an exception, since on the whole, they have been lagging the rebound that started six days ago.

Volume of trading was light Tuesday and Wednesday, a slight negative.

Brooksie’s Daily Stock Market blog: An edge before the market opens.

Thursday, March 24, 2011 9:23 am EDT

DJIA: 12,086.02
S&P500: 1297.54
Nasdaq Composite: 2698,30
Russell 2000: 811.24

Jobless claims for the week ending March 19 were down 5,000 to 382,000 – acceptable and even good in that they are not up.

Durable Goods for February were down 0.9 percent versus +3.6 percent in January, 80 economists surveyed by Bloomberg News expected an increase of 1.2 percent - a negative, but not deadly.

Neither report had an adverse impact on the U.S. stock-index futures shortly after 8:30 when they were released – positive, but …..

We’re kind of in limbo here, a time to read between the lines. My gut says we roll over into a sideways trading range as Wall Street digests the post-earthquake/tsunami/nuke fallout and its impact on global economics and international developments, which are inconclusive at this time.

We had the correction I expected, and it shook the tree adequately to clear the overhead supply of stock. I just don’t see a “straight-up” market from here, not without some more back ‘n fill in stock prices.

Again, Nasdaq stocks can offer some attractive opportunities.

George Brooks
sensublesleuth@gmail.com

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
SCE.PRB Southern California Edison Co n/a n/a n/a 0

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