Stocks rallied across the board, with the Nasdaq up .9%, Nasdaq 100 1.3%, SP 600 .8%, SP 400 .9%, SP 500 .75%, and the NYSE up .56%. Volume was higher across the board, however it was still lower than the 50 day volume average. So that put a damper on the higher trade.
Financials and Generic Drugs helped lead the SP 500 to 4 1/2 year highs and the NYSE to all-time highs. The indexes ability to hit new highs was impressive considering how poorly oil stocks performed. The oil stocks have increasingly become a larger representative on the indexes and the ability of the indexes to close higher shows that there are other stocks taking a leadership role away from energy stocks. That can only be positive for the markets.
Leading growth stocks continue to act well, moving higher and bouncing off key moving averages and support levels. However, a lack of stocks showing up on my scans has me wondering if the momentum is slowing. With some long term winners giving me clear final profit taking signals (GES LDSH), along with other long term winners I have been selling the past month, it appears new leadership will have to take form soon or we might face a possible end to the rally. All things need to be taken into consideration here.
Another positive for the bulls case is the newly released Investors Intelligent survey. It came in with 45% bulls and 29% bears. The bulls came in lower than last week and the bears came in higher than last week. However, the market has rallied. This is a positive for the bulls as this gives us the wall of worry we need for markets to climb. If people are shorting the market while it is rallying, they will eventually have to cover into a rising tape and that only causes prices to rise more.
So there is not much to add to this that I have not said in the previous two post. I would re-read those two post to refresh yourself on where we stand currently.
Ignore the news that is knocking this market around and follow and invest with the trend. Good luck tomorrow!
New Swing Longs: AX
New Swing Shorts: NONE
Longs Outperforming Market: NNDS RAIL-68% LCC-64% OXPS-79% IHS-38% CIB-36% TMI GOL-80% KEYS-37% CRDN-61% BEAV-41% SLAB TRAD-58% CBG-85% ADBE BOOM-352% KEX CHE FFIV MSCC-69% MDCC-43% XRTX-31% ARS-44% RVSN-33% STMP-31% CLZR-37% KNXA-29% MORN RUSHA TRO ATHR-66% SCHK-29% KLIC-33% IKAN-38% AXE-26% RUTH MEK SXC QCC UEPS DRH SPWR-35% DEZ-150% AMKR MNG-79% RNAI ACTG-29% TSCM-57% SIRF-132% RADN-27% CDE SMSI BFT MEL TNE STD BKUNA RSTI-29% ECLP MMUS BTUI-104% ZEUS-37% IT SBAC-36% NRPH-95% DB LSI MU ANAD-112% STKL UBS ASTE CCI-73% IED-52% BE DA BGC-49% EDS IDEV MSPD FC DCO DMX ALKS NKTR ADLR-73% CCUR ARBA VTRU MEDX HPOL TBH PEIX
Shorts Outperforming Market: NONE
Stocks On Radar Screen: KEYW XNPT
Blowup: LCAV--I will be leaving with only a 7% loss, after my Jan 12th purchase. This is why it is so important to buy correctly and not chase stocks. If you bought this stock yesterday you would be sitting on one smart loss. By buying right, I am getting out of this stock with a pretty good cut loss. It happens. Just like yesterday. Do a "disaster de jour" or "disaster of the day" search on my blog. There have been others.
2 comments:
who do you use as a broker?
Interactive Brokers and Scottrade.
I think I am going to open up a Tradestation account to move some of my IB money over there. If I dont trade enough for it to be free, I might not stay. But I am thinking about it. Because, I would like to diversify some funds away from the IB account.
I might choose ETrade too. I just don't know yet.
For now, though, it is Interactive Brokers and Scottrade.
Post a Comment