Current Ideas in The Stock Market!

One major indicator in the market revolves around volume. When a lot of trading goes on and more people trade than patterns arise and consistency happens. The opposite happens when the volume drops. The market works in a self fulfilling prophecy. If everyone believes that when it snows in central park on Christmas day that the market will be down, than everyone will end up closing their positions for anticipation of a gap down, thus selling off and causing a drop in the market. Unemployment figures recently came out and there was good news. Most of the traders didn't buy into it, but because of the self fulfilling prophecy the joe-shmo trader thought now was a good of time as any to get back in the market, propelling it upward, so the active day traders followed in anticipation. We are currently on a down market, but remember that the market always has more room to go up than down. The timing remains impeccable.

I have been watching two stock very closely.
AMAT and CSCO

Starting with AMAT: http://www.nasdaq.com/aspx/dynamic_charting.aspx?selected=AMAT&symbol=AMAT&symbol=CSCO

Amat has had a steady climb upward since Sep, but comes close to an exhausted mark of 14.50. This stock will ether break through for a steady climb upward, or come crashing down very quickly very soon. My 80% guess goes with the greater risk of crashing, since most of the holders are investment banks and not owners of the company who actually care whether it fails or not.

Next CSCO: http://www.nasdaq.com/aspx/dynamic_charting.aspx?selected=CSCO&symbol=AMAT&symbol=CSCO

Csco has been on a steady down trend since Jan of 2010. The recent gaps downward lead me to believe that the trend will happen again. Alas for the moment and short term trading it will continue to rise until 22.40 and then gap down drastically once again. So on the short you can make cash but on the long don't sit on a ticking time bomb.


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