Just the sort of price action I was expecting yesterday, as much as that was uninspiring, today was the opposite and adds to some promising signs for the bulls. Volume was reasonable, not huge, and the market didn’t look back from the opening. A consistent trend right up to the close to produce the second of such days in eight sessions. A solid rise for the XJO of 3.7% saw it close 143.4 points higher. The sector board was all green after the close. As is often the case with counter-trend rallies, it was generally the stocks and sectors that have been punished the most that rebound the most; Energy, Financials, Materials and Metals/Mining all up more than 4%. I’ve looked at more than four hundred charts today, both short and long setups are scarce so patience may be needed for quality setups to present and for us to determine whether this is a bounce to be shorted or whether it transpires into a more bullish scenario. On a sad note, Steve Jobs of Apple fame passed away today. Widely regarded as a business and entrepreneurial legend, may he rest in peace.

Similar stock trading tips:

1. Thursday 14th July, 2011
2. Thursday 9th June, 2011
3. Friday 5th August, 2011