April 29th the Nasdaq, Sp500, Dow, and Small Cap 600 all started out weak, got weaker, then reversed to close at or near the high of the days. The Nasdaq reversed the most dipping further down intraday than the rest of the indexes. The same thing happened today. These are moves you see in a current rally. And that is what we have been having for the past two weeks.
Today proved yet another chance for the bears to crush this rally and they couldn't do it. They even had help today with a plane flying off course and caused a spike down that ended up getting the stops and washed out the weak hands for the reversal.
The two reversals I have talked about above (apr 29 and today) did not happen all year as we were going down. When the market used to crack the bounce did nothing that constituted a bullish reversal. This time things are different. Dips are being bought.
The best thing about this rally, people are still bearish. That is the wall of worry we need to keep climbing. There is plenty of resistance ahead for the indexes but I keep looking at all these beautiful charts I have in leading sectors and fundamentally strong stocks and can't help but think these resistance levels on the indexes will be broken sooner rather than later. But if we get some heavier volume and some 2% moves down, I will of course change my mind. Doubt that happens this time though. The bears are late to the beginning of the year sell-off.
As a bonus, though, if you are a bear. How did you like my GRU short yesterday. You would have made a small killing in one day. I did not take the short, cause I believe we are in a rally-that-has-legs kinda market and did not want to risk a MCRS happening to me.
Swing-long trades to take (buy as close to pivot point as possible): ISSC PWAV DADE MTX BAP CCRT TXCC SYKE FARO. There are also some medical stocks that look good but I am not going long in them: HSIC BOL
Do me a favor if you read this, go back to yesterdays commentary and check out how TXCC, SYKE, and GRU (short) did. I know you will like that.
Have a great day!! I did. Aloha.
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