Today on the Marketbeat - Rally on Hope

Market #'s @ Close:

DOW: +484 to 10,850

S&P: +60 to 1,166

NASDAQ: +98 to 2,092

RUS2K: +22 to 679

TSX/S&P: +600 to 11,884

Vix: -7.30 to 39.39

Internals:

Core Sector List: 16/0 Bulls, many up 3-4% today

NYSE

BREATHE: 7.7/1

TRIN: -

A/D Line: +1937

NASDAQ

BREATHE: 5.5/1

TRIN: -

A/D Line: +920

Rally on Hope:

Chart of /ES (S&P Futures)

After a blow out day like yesterday (see blog entry - Dow down 777), we began the day with a grain of salt, and some hope that the market would at least find a short term floor. Those hopes were answered today as the trading gods gave back some of the huge losses the markets took yesterday in the woodshed. the broad market pushed higher almost all day today taking a decent sized chunk out of the big fall we took yesterday. The S&P (/es) took off early and although chopped around till after lunch pushed higher to the last minute of the day, the Dow followed suit pretty closely. News hit the wire after lunch of law makers wanting the SEC to halt market volatility as another measure to protect the markets....Personally I think the people outside the market should be focusing their day jobs. This piece of news did not really do much to halt the rally. The only piece of today that casts any shadow on the nice move we saw, is that there is a lot of hope being pushed for the Rescue Bill to be signed sealed and delivered by weeks end....and that could of been cause for the rally. However, we are traders and traders trade what they see, meaning you don't need to know exactly why a move happens, just know that it happens and you react to it accordingly. In a market environment like this, there is no room for marriage to opinions. 

Chart of Internals:

Under the hood it was essentially the exact opposite of yesterday, just less intense. Breath readings came in at 7.7 to 1 on the NYSE and 5.5 to 1 on the NASDAQ. Trin readings haven't been very reliable lately, but the TICK made up for it as it spent most of the day above 0 giving us a clear idea of what to focus on. The A/D lines both closed high on the day: +1937 on the NYSE and +920 on the NASDAQ. Finally the core sector list finished all green, closing at 16/0 to the bulls. 

Unusual Options Activity:

EEM / AAPL / ATHR / XLY

Stocks in scope:

BTU / CNX / ADBE (trig of 39/40 to the upside)

Food 4 Thought: 

Today i wanna keep my lesson light, and on the inner game side of things. Today's idea of focus is The Virtues of Failure. What i mean by this can be simply put in words from an old Nike/MJ commercial I saw, it always gave me chills, it wen like this - 

I've missed more than 9000 shots in my career.

I've lost almost 300 games.

26 times I've been trusted to take the game winning shot, and missed.

I've failed over, and over and over again in my life...

And that is why I succeed.

These words cannot ring anymore true than with a personal trader/investor. Our jobs are often self regulated and very much private. It can be tough some days to take a losing day, or a big loss. But the important thing to remember is that, every 'failure' is an opportunity to learn and transcend that error. I just want all my fellow traders to know that making a mistake is OK, taking a loosing trade is alright, if you follow your rules and guidelines, its OK.....just remember that the only thing worse than being wrong, is Staying Wrong!!

Till next time traders....