Today is sure to be a bumpy day on Wall Street with the last economic numbers giving most investors a reason to press pause on their strategy and look on. Lessened trading equals more volatility. Until the next set of economic numbers is released next week, It would be shocking to see a ton of positive movement on this Friday afternoon. To review, here are three small cap market movers buzzing on everyone’s radar.

Chelsea Therapeutics, CHTP announced yesterday that their phase 2 clinicial study of Droxidopa has been initiated into a chronic fatigue syndrome study. 20 patients have been enrolled in the program and will be monitored for 12 weeks. Further studies will be used upon completion of the three month trial. These phase trials make or break bio companies and often has the company’s stock trading very volatile. Most of these small cap biotech companies are in an aggressive portfolio manager’s line up. Throwing a dart every now and then in the hope of FDA approval can be lucky break. In the company’s last conference call on June 27th, the company reported a net loss for the second quarter of $9.9 million or $.25 a share, which can be expected from a company looking for approval. The metric to look at here is product development and R&D, the most far along being a Phase three study of Northera Study 301. Second on today’s watch list is Mentor Graphics, symbol MENT which is trading at $9.75 up $.73 or 8% on a volume of over 500k. The company soared this morning after reporting earnings for the second quarter yesterday at the market close. The company reported $187.9 million in revenue along with a non GAAP earnings per share of $.01 and a GAAP loss per share of $.13. The company has made a few acquisitions recently, including Flomerics, Logic Vision and Valor which are all said to be tracking very well. Guidance for the third quarter includes $220 million in revenue and a non-GAP EPS of $.15, and a GAAP EPS of $.08. For the full year, revenues of $880 million and an EPS of $.20 were estimated. The heightened forecast and encouragement concerning the performance of acquisitions has investors buying. With a Patent Infringement suit against EVE, investors may be confident in the win there as well.

For more information visit http://www.worldmarketmedia.com/779/section.aspx/2270/post/three-small-cap-market-movers-nasdaq-chtp-ment-amex-pip - About the Author: WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. Article Source

S&P 500

One week ago we suggested that the market will sell off on Friday due to traders and investors not holding their positions over the weekend. We are currently holding this belief going into this Friday – either the market sells off or trades flat. The rally of the markets today due to strong earnings pushed the dollar lower against the euro as traders took more risk.

During a testimony between Ben Bernanke and the House Financial Services Committee, the Fed Reserve Chairman spoke about further stimulus actions. Looking at the Asia markets China is expected to slowdown and Japan was downgraded by Credit Suisse.

We only rallied to about the same level as last week on the 5 minute chart of the S&P 500 as traders relieved their positions last Friday and bought up their shorts this week.

TO BE CONTINUED WITH CHARTS AND VIDEOS HERE!

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice and nothing in this material should be construed as such. There is risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010

- About the Author: Shamim Ziyaaudhin is one of the editors of TraderMongers.com a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers Live News Feed Article Source

Volatility is usually followed by a departure from fundamentals and eventually technical patterns take over.  This happens more and more when markets recover from sharp sell-offs.  This is a phenomena which occurs counter the existing trend, meaning that if the trend is down- then the rally has technical underpinnings.  We are seeing exactly this in todays action.

“Technicals matter in this market,” Pimco co-CEO Mohamed El-Erian, underscoring and perhaps understating just how much statistical measures of market behavior influence trading.

In particular, analysts have been watching support tests on the Standard & Poor’s 500 (INDEX: .spx) around the 1040 level and top-side resistance near 1110 as an important gage for whether the market can stay out of the recently breached correction territory and resume the aggressive bull-market run that preceded it.

“Since your valuations look good, people become more focused on technicals because now they’re looking for another measure to gage their risk,” says Mike O’Rourke, chief market strategist at BTIG in New York. “They already know they’re getting good valuations. You’re looking for secondary indicators to key decisions off.”

Of course, traders and shorter-term investors have always followed metrics like the 50- and 200-day moving averages-trend lines that track the market‘s movement over time intervals which are used to determine where it’s headed next.

A close above a moving average for several consecutive trading days indicates a breakout higher, while breaching a low often means the opposite.

Such levels certainly can be driven by news events, but often became strong psychological barriers that trigger buying and selling independent of the headlines.

O’Rourke says he is watching the CBOE Volatility Index (Market Data Express: VIX) for clues. With the VIX holding below 30, he thinks the market could have an upward bias but will need help from economic numbers.

The market has bounced off a more than 13 percent correction-level downturn, with buyers stepping in whenever the S&P gets near the 1040 which represents the 200-day moving average.

“From a macro basis, it’s going to be a situation where you’re stuck in this trading range, which is the technicals, unless something unforeseen happens,” says Alan B. Lancz, president of Alan B. Lancz and Associates in Toledo, Ohio. “In that sense, it’s going to take an awfully big piece of news to trump the technical levels right now.”

In such an environment, the investment strategy is pretty straightforward, says Lancz: Sell into rallies and buy the dips until the market shows signs of a breakout.

“Get more defensive. Look at companies that haven’t moved yet if you do have this trading-range type of market,” he says. “You can buy more cyclical companies that have taken a beating that can offer some opportunity for a bounce-back rally.”

The important observation for this rally is that it is coming in a counter cyclical nature, few have accepted that we are in a long term decline.  Certainly not this writer.

To view this article at World Market Media click on the link below: http://www.worldmarketmedia.com/779/section.aspx/1851/post/market-gets-technical-bounce-dow-21388

Disclosure: no positions

- About the Author:   About World Market Media:WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. Article Source

The overall focus in the U.S. market as of late has been Europe, whether it is BP, Greece or Turkey, Wall Street’s collective eye has been away from our economic numbers and on those of our friendly neighbors to the east.

And rightly so, in such an interconnected world economy, any little tick can set off alerts in HFT programs everywhere setting off trading all over the globe. The butterfly effect absolutely applies. Today, European worries have again been blamed in the market‘s poor performance. The DOW finished down 89 points of .9%, S&P closed down 11 points of 1.13% and the NASDAQ ended the day 41 points lower or 1.8%.

Oil closed low, finishing the day at 70.93 down .58 or .81%.

Gold, as highlighted by our previous posts increased 23 points or 1.9% for the day as investors continue to run for the safe investment. It would appear that investment banks ran to the metal in order to cover, and many day traders were stuck short thinking that the price was inflated. The combination of the two has sent prices soaring

The European Union has begun to finalize its bailout planning, structuring the package as a vehicle chartered under the law of Luxembourg, owned and guaranteed by all 16 members of the European Union. A few details remain such as how the vehicle will market its debt. Whether the debt will be packaged as a whole; or if slices debt will be applied to certain bonds is still undecided.

Germany remains the biggest critic of the bailout because of its economic upstanding and fiscal long-sightedness, but the country’s parliament has caved and given its share of the credit guarantee. Today German manufacturing orders were reportedly increased.

Whether these developments take root is still unseen, investor confidence has not been re-established, with many investors running away from currency in general, especially the euro (trading at 1.1923 against the dollar) Euro-fear will continue to plague American markets until this is resolved.

  For WMM, our Micro Cap Index closed down 27 points or 3% lead by PSWS, Puresafe Water Systems and ASYI, AISystems.  our Nano Cap Index closed down 23 points or 2% lead by EDGR, Edgar Online, and AEMD, Aethlon Medical Inc.

Disclosure: no positions

To view this article at World Market Media click on the link below: http://www.worldmarketmedia.com/779/section.aspx/1746/post/market-wrap-up

- About the Author: About World Market Media:WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor’s Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies.   Article Source

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S&P 500 Pivots

Another positive day for the S&P 500, the Nasdaq, and the Dow as they all traded into positive terrority on the day after of the FOMC announcement. Currently all the major indexes are broke through their natural resistance levels: Dow 11,000. Nasdaq 2500, and S&P 500 1200.

After strong economic earnings and jobless claims falling to 448,000 pushed the indexes higher. The S&P 500 Index is still below Wednesday’s previous high of 1211. Breaking this level would represent a significant upward dash to the 52 week high of 1220.

Friday is the last day in April so expect some end of the month activity with various economic numbers expect. GDP numbers will give us the momentum of the market going into the first quarter of 2010. The market is mostly likely to be weak after the April 15th tax deadline. Since the S&P 500 is back below the natural support level of 1200 – the daily chart may indicate the beginnings of a trend change as we reach the ‘Sell in May’ prophecy. However the daily trend remains quite strong.

The market volatility index fell to 18.44 after nearing the 200 moving average on the daily chart. It reached the 52 week low of 15.23.

Summary of Pivot Levels:

1220: 52 Week High

1211: Wednesday’s Previous High

1203: Friday’s Primary Pivot Level

1200: Natural Support

Disclaimer

The content in this website is provided for educational and informational purposes only. We offer no investment advice, and nothing in this material should be construed as such. There is a risk of loss when you invest; past performance is never a guarantee of future performance. Trading is the sole responsibility of the individual. No reader should act on the basis of any matter contained herein without getting appropriate professional advice. Every investor or trader should consider all advice and all offerings of products and services on their own merits and for suitability to the individual’s personal needs and circumstances.

All Right Reserved TraderMongers.com © 2010

- About the Author: Shamim Ziyaaudhin is one of the editors of TraderMongers.com a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers E- News Article Source