Kudrna's Stock Market Talk

Last week was the first week of 2012 that the markets closed lower than they started. The modest move lower did little to remedy the majority of extended stocks. For most of the week, any weakness was quickly bought by anxious dip-buyers and only until Friday did we actually receive true weakness. However, even that weakness was contained as many market players were positioned for a much deeper pullback.  That, in itself, may have been a reason the pullback was contained as many were prepared. Read the rest of this entry »

Quote of the Day:

The law must be passed by midnight because come Monday morning, the banking and financial markets must have got the message that Greece can and wants to survive.

Evangelos Venizelos – Greek Finance Minister Read the rest of this entry »

Quote of the Day:

I don’t think we’ll come to any results tonight. The negotiations have made progress but we’re not there yet.

Wolfgang Schaeuble – German Finance Minister Read the rest of this entry »

Apple (AAPL) had a good day today; it was up 1.7%
while the market S&P 500 was up 0.2%, QQQ ETF was
up 0.5% and XLK ETF was 0.6%. It appears that
AAPL may be on the move again. Read the rest of this entry »

Quote of the Day:

That Nicolas Sarkozy needs Madame Merkel says a lot about his situation.

Francois Hollande – Leader of French Socialist Party (Main Opposition To Sarkozy) Read the rest of this entry »

Quote of the Day:

Now Europe is facing a debt crisis and we must consider relations with Europe strategically to protect our national interests

Chinese Premier Wen Jiabao Read the rest of this entry »

Referencing the weekly homework and stock radar, I am highlighting a few of the charts below for potential trades in undervalued stocks.

We had a gap-down to start the week off and as usual in this new environment, the bulls came to the rescue.  With the Greek deal far from agreed upon, many thought today was the day we’d finally receive some weakness which would hopefully reset the many overbought charts.  Instead, the trend for the past few months continued yet again.  A gap-down finds enough dip buyers that it can not break to new lows, so we drift north for the rest of the day towards even.  This action is not helpful for traders as we must be extra selective with our capital keeping trades either smaller or fast and aggressive as we trim into the close rather than hold overnight. Read the rest of this entry »

Quote of the Day:

We want Greece to stay in the euro … but I also say there can be no new Greek programme if agreement is not reached with the troika.

Angela Merkel Read the rest of this entry »

All three US market averages closed the week ending
2/3 with big gains. Dow Jones index even reached the
highest close since May 2008. In such strong market
environments, however, one still can find weak stocks. Read the rest of this entry »

Last week started out with early consolidation as the bulls took a breather after the run we’ve had.  By Wednesday, the bulls took charge once again, catching many longs under-invested and frustrating the shorts even more.  The action has been so bullish that it has converted many capitulated shorts, usually a sign further upside may be limited in the short-term.  Many traders, myself included, are cautious of a pullback that we never seem to be receiving, but we logically believe is around the corner.  A pullback is actually quite healthy, not negative, but you can’t tell that to this market as the bulls continue to run and the euphoria seems to be reaching critical levels. Read the rest of this entry »