Stocks rallied across the board today, with the Semiconductor and Technology stocks leading. The Semi Index closed up 4.3%, Nasdaq 100 was up 1.4%, Nasdaq up 1.5%, SP 400 up 1.5%, the SP 600 up 1.4%, SP 500 up .8%, and the Dow up .5%.
Volume came in higher on the Nasdaq, while it was below yesterday's level on the NYSE. The higher volume on the Nasdaq along with the price gains helped erase the down session yesterday from the minds of the technology bulls. The price gains on higher volume came with strong breadth, with advancers beating decliners by 2 to 1 margin.
A distribution day here and there on the indexes as they rally are normal. It is how they react afterwards that count. With the Nasdaq and NYSE bouncing on good breadth that brings good news to the bulls who are hoping for higher prices. If we get more in the coming days then we can worry. But for now today was very bullish on the short term.
Telecoms, Foreign Banks, Bio, Tech, Chips, and Retail are helping lead this rally higher as a rotation appears to be underway into technology stocks. Besides, did you see CSCO today? If that isn't proof we are having a tech rally, I dont know what else is.
Another postive for this rally is that the II survery of bullish/bearish newsletter writers came out today with bulls dropping and bears rising for the seventh week in a row. This is very bullish as the market is rising while bears are increasing. Eventually, they will have to cover and that will help create more momentum to the upside. Markets like to climb that wall of worry the bears create. And right now they are whipping up a thick bearish wall.
I am staying long while all of these good charts continue to act well and keep offering me new longs to buy. The bears did not even really hurt my charts last night so it is obvious the weakness that is in the market is not very broad. After today's rally most stocks I own are even or higher than they were before the opening yesterday.
The markets have that back and forth feel with upside momentum behind it. Yet if we want I can find some bearish arguments that are legitimate. The Dow and SP are still both in a short term and sub intermediate term downtrend, The Nasdaq is still not a new highs, and the markets are overbought short term. But if that is the "facts" side of the bears argument, they will have to do better than that.
Great luck tomorrow. Go get em!
New Swing Longs: OVTI CAMT ISV STTS CYBS WDHD APTI. For more on these longs and previous longs please go to Investors Paradise.
New Swing Shorts: NONE
Longs Outperforming Market: ATHR-91% SIRF-158% GRS-103% ANAD-113% WIRE-123% ASF-187% CBG-92% KLIC-33% PAY-32% BBD-161% SAY-35% VIMC NVDA-63% BGC-54% ERS-151% SURG NTAP PNRG XRTX-33% KEYS-41% SLW-80% STX-29% MSCC-73% TRAD-61% PETS-151% SCHK-28% MDCC-41% UEPS MFLX-189% BAM RVSN-34% LSI KEX RATE-110% CIB-40% PKE IHS-29% LTM GOL-76% ORA-63% BNT-41% ECLP ARS-41% STMP-35% HEIA-27% BEAV-37% CRDN-74% ASVI-26% TMI NNDS-25% SNPS CHE NGPS COGO MEK-31% MTU FFIV ALTU MMK DRH SPWR-59% SXC KNXA-37% MNG-123% CNXT-51% NSTK-49% AMKR-26% DECK PANL BKHM-33% CCUR BTUI-93% SLAB GNA GNBT-63% BWNG-47% FDRY JDSU-32% ALKS-34% EFII LRCX-32% AX DMX-35% CVO-67% TBH BGO-30% MU ESLR-127% MT TNOX-26% EMAG ZEUS-32% VRTX-231% SPSX-30% MNST-45% TWTC-82% EVST-39% CTXS-25% UBS LWSN STXN-57% TGE CHRD TFSM STXS RNAI-31% SBAC-37% RDCM-51% SPNC-71% RUSHA KDN ATRM DSGX-46% SWW MDM BLD-32% SMF
Shorts Outperforming Market: NONE
Stocks On Radar Screen: MRVC GEMS COSI ZL DXCM LUB MNKD CSH GNTA LBIX AKN
4 comments:
Hi Josh:
I nominate NSTK as "blow up" of the day.
What happened to REGN? I don't see it listed in longs outperforming the market.
You had a new long buy on Sept. 28 at abt 9.50. I guess you exited and took profits but it never traded below your entry that day I don't think, and its now 17?
All The Best
"A Friend" of your Blog
NSTK is blowup of the day. Leaving with a total of a 6% loss. Not too bad. For every NSTK, there is MEK and MMK.
REGN--I am still long. If you are reading my blog everyday you know I dont post ALL of the stocks that move up. If the volume is not over the 50 day volume avg. I dont post it.
And you are right. It has not traded below the low or gave a clear cut signal. I am still long.
Hey, Josh, what do think of ECLP - do you find these short flag patterns to be usually successful?
Also was curious about two steel stocks - AKS and MT.
CNQR and CYMI as pullbacks? Bought a little of the second yesterday but was hesitant about it.
Thanks a lot. Your blog is a great learning tool.
eclp mt aks cymi cnqr
ECLP: yes the flags do usually follow the direction of the trend. But this is not something to buy right here. You are late on ECLP for a safe entry.
MT AKS: I am still long both of these soon to be bad boys.
CNQR and CYMI: Both are pulling back perfectly. I think you got two good stocks on your hands. Use the 50 dma to sell some off if they decide to violate that line.
Great luck and thanks for the kind words. Without my readers this blog is useless.
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