The market moved higher once again today, but during the last half of the day stocks lost ground.  The NASDAQ McClellan Oscillator moved down 5 points to finish at a +57.  This indicator had the second day of relieving overbought conditions.  The only concern I had today was higher volume.  It is not a huge concern, but here is my point, from IBD.

Volume rose across the board. But much of the trading took place as the market slid, a negative sign for the market.

Normally, higher volume on a day when the market climbs is encouraging. But the swelling volume as indexes retreated cast doubts.

In fact, the indexes’ lackluster gains in higher volume resembled stalling action.

Right now, I am going to call this resting action.  I will keep a close eye on tomorrow’s action.

The market worked off some of the overbought conditions I mentioned yesterday.  The NASDAQ McClellan Oscillator finished down 7 points to a +62.  This is still extremely overbought, I would love to see three more days like this.  Here is a visual look at the oscillator.

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Light commentary and lots of charts in today’s post.  As I have said since the follow through day, the market’s major indices are being led by the NASDAQ (new high on Friday), the NASDAQ 100 (21 cents from a new high on Friday), and the Russell 2000 (broke out of a bull flag into new highs on Friday). 

I am seeing a lot of breakouts right now.  I must give a quick disclaimer (with a little evidence) that the market is extremely overbought right now.  The percentage of NASDAQ stocks above their 50 day moving average is 65%.  The NYSE McClellan Oscillator closed up 23 on Friday to finish at a +75.  I have not seen that level since April and July of 2009.  The NASDAQ McClellan Oscillator closed up 22 to finish at a +69.  Again, this level has not been seen since April 2009.  If you enter a trade, please employ stops.  Now on the charts.

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Here they are courtesy of the FDIC.

#23

Sun American Bank, Boca Raton, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Sun American Bank.

As of December 31, 2009, Sun American Bank had approximately $535.7 million in total assets and $443.5 million in total deposits. First-Citizens Bank & Trust Company did not pay a premium to acquire the deposits of Sun American Bank. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase essentially all of the assets.

#24

Bank of Illinois, Normal, Illinois, was closed today by the Illinois Department of Financial Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heartland Bank and Trust Company, Bloomington, Illinois, to assume all of the deposits of Bank of Illinois.

As of December 31, 2009, Bank of Illinois had approximately $211.7 million in total assets and $198.5 million in total deposits. Heartland Bank and Trust Company will pay the FDIC a premium of 3.61 percent to assume all of the deposits of Bank of Illinois. In addition to assuming all of the deposits of the failed bank, Heartland Bank and Trust Company agreed to purchase essentially all of the assets.

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Not much has occurred since Monday’s follow through day.  Today’s close was a bit better than Tuesday and Wednesday sessions.  Maybe traders are waiting for Friday’s unemployment numbers.  Some of the stocks I have mentioned recently were in the news today.

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