This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

S&P, Nasdaq, Russell on 6-Day Win Streak

Stocks in this article: UVXY SPY

NEW YORK (TheStreet) -- The stock market finished to the upside on Tuesday. For the sixth consecutive day the S&P 500, the Nasdaq, and the Russell 2000 surged ahead.

The DJIA was also up, making it five out of six days to the upside. Since those huge down days of April 10-11, the markets have recouped all of their losses.

The Nasdaq gained 39.91 points on Tuesday to close at 4161.45, while the DJIA gained 65.12 points to close at 16514.37. The Russell 2000 gained 13.30 to close at 1155.61 and the S&P 500 gained 7.66 to close at 1879.55.

The Nasdaq and Russell 2000 have now followed the DJIA and the S&P 500 into Trend Bullish territory. Trend Bullish is a three-month or longer time frame, according to my internal algorithm process.

It was a short two weeks ago that all the indexes entered Trend Bearish territory. They did not stay there very long. It begs the question, how long will the indexes now stay in Trend Bullish territory? It may not be very long. This stock market in 2014 has been volatile. It has no memory from day to day or week to week.

The one issue that has consistently been at the forefront of the up days in 2014 has been the volume. Volume is a constant issue that matters to me. The volume over the last six trading days has been less and less every day. As a matter of fact, Monday was the second-lowest volume day of the year in the S&P 500 Trust Series ETF (SPY).

A stock market that has a very wide daily trading range between its buy trade and sell trade and that approaches its sell trade level on very low volume, signals extreme risk, according to my process. If you are a trader and are chasing this market to the upside, you are taking on some serious risk.

This has been a classic short hedge fund covering at the highs. They are the same hedge funds that were shorting the market two weeks ago at the lows and are now covering at the highs -- a very typical response for which they are notorious. When they are finished covering, which should be any day now, I expect to see this market have a sizable downside move.

I have been sitting on the sidelines the last few days as this low volume move to the upside plays out. I did add one new position today. I purchased a small position in the ProShares Ultra VIX Short Term Futures ETF (UVXY) as a downside hedge. I am fully aware that I may be early. I will add to the position as necessary.

At the time of publication the author was long UVXY.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs