The Final Hour Is The Real Test
Day after day, the major stock indexes seem to give up the early gains in the final hour of the trading session. This afternoon, the Dow Jones Industrial Average is trading higher by 400.00 points to 11,118.00. This rally higher is broad based as every sector seems to catching a bid higher. All is well in Mayberry at the moment. The final dreaded 3:00 pm hour is upon us. This is a time many many institutional traders have been pressing the sell button over the past three weeks. Let us make no bones about it, these markets are very oversold and due for a bounce. Therefore, it is very possible that the markets will end the day in positive territory for only the third time in the month of August.
This afternoon, many of the market leading stocks are trading higher. Stocks such as VMWare Inc.(NYSE:VMW), Salesforce.com Inc.(NYSE:CRM), and Rackspace Hosting Inc.(NYSE:RAX) are surging higher. The tech heavy NASDAQ Composite is trading higher by more than 100.00 points. In fact, all thirty stocks in the Dow Jones Industrial Average(DJIA) are trading positive today. It looks as if the stock market has a chance to close in the green. Traders should be aware that there could be some profit taking before the close as many traders and investors are nervous to hold overnight. Either way, the final hour of the session is going to be the real test for these markets this afternoon.