Stock Market Close Charts 3/23/09

The Nasdaq is up nearly 4% for the year and the financials have erased half of their YTD losses with this months 24.74% rally and they are now down “only” 24% in 2009! I had a great powder day today, but I cannot help but wonder how I would have done if, instead of floating on fresh snow, I was trading. The market will be here after my week off, but today’s upside move was enough for me to temporarily wonder…

Today’s trading saw a wobbly start after the large gap higher, but quickly reclaimed VWAP and never looked back. These charts are a great example of why daytrades should generally be done in the direction of the VWAP for the day.

We have been observing the Volume Weighted Average Price since the gap higher on March 10 and you can see why the average price since “the bottom” remains a key benchmark to observe.