Not Everyone was Selling

Yesterday's market drop once again produced speculation about a market drop, or at least a significant pullback. Most of the Dow's 176 point drop was in the first 5 minutes. Around 2pm, buying came in. The NASDAQ didn't log as big a drop and buying came in as well at 2pm.

Expecting to see some problems in my watchlist, I was rather surprised looking through the charts. A number of the stocks actually closed up on above-average volume. They were focus stocks in various Seasonal Forecaster issues over the past year, picked primarily for likelihood of institutional accumulation. The gainers all continue to show institutional accumulation and produced good moves yesterday while the DJIA and the S&P 500 logged 1% losses.

The winners were Apple (AAPL), Covance (CVD), BioGen (BIIB), General Dynamics (GD), NetApp (NTAP), Papa Johns (PZZA), and Union Pacific (UNP). Two of these stocks have profitable open income trade positions in my newsletter, one isn't currently being traded, and the other four have current gains of 10.1%, 14.5%, 19.9%, and 38.3%.

Many of the losers logged only small moves to the downside on below-average volume. At this point, there isn't a lot of evidence institutions are exiting positions in their stronger holdings.

It still would be best to sit through today's market action. The weekend will give a chance to put it all into perspective.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, including the answer to the above question, type in www.markettamer.com/seasonal-forecaster

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2014 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.

Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.

As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.

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