Falling oil prices and extremely strong earnings helped stocks rally across the board, with the Nasdaq and SP 600 leading. If this was the reason or not, who knows. But this is what they have decided to list as the reason for today's up move.
The Nasdaq and SP 600 rose .9% and the SP 500 and DJIA rose .3%. The big winner of the day was the Dow Jones Transportation Index with a 3.34% gain and the Philadelphia Semiconductor Index with a 1.3% gain. The Transportation stocks saw some of today's biggest moves and many stocks in that sector still have beautiful charts. The Transportation-Services sector itself advanced 8% on the day. Quite stunning!
Volume was lower on the Nasdaq and higher on the NYSE, with breadth positive on the NYSE by a 5-to-3 margin and positive on the Nasdaq by a 3-to-2 margin.
Another day, another win for the bulls. Techs and Transportation stocks seem to be showing some leadership as oil falters. If Biotech, Techs, and other Service industries have a rotation into them from all the commodity stock speculation, this bull could have more room to run.
Skepticism is still out there, folks. Don't think everyone is bullish. Remember, last week the wall street journal survey? 77% are nervous about this economy. The new Investor Intelligence Survey had bulls drop to 43% and bears rise to 28% the past week. Yet stocks went higher. A positive divergence.
I am finding plenty of stocks to buy and am passing up on a lot that are working out also. But I have to stay disciplined and trade my proper setups. Even though the sloppy setups are working too, it is better to just put more money to work in the better patterns.
The last thing I want to bring up tonight is ERS. All I have to say is history repeats itself. You can read my post yesterday and go through my open forums on Investors Paradise and see that I spent all day telling traders why ERS was done. Please read it, so you can now review the weekly and daily chart and learn what a climax run looks like in real time. Just put your hand over today's action.
Aloha and great luck tomorrow!
New Swing Longs: GLBC TAM LTS FNSR GFX
New Swing Shorts: NONE
Longs Outperforming Market: TTES-70 COGO-69 RADN-39 EAGL-88 VTS-36 BTUI-168 STRL-50 SMSI-68 ICTG-82 KEX-57 ZEUS-69 BGC-105 BOOM-451 PNRG-57 ARS-62 EFII ASPV WIRE-197 SNDK PETS-108 NTAP JOBS CTXS-63 RUSHA LRCX-56 RMBS SHFL SLW-129 PKE CAMP IVAC-26 KNXA-48 PKTR FRGB LTM TRAD-49 GEMS-42 FTK DECK-25 BBD-136 ATHR-114 MNST-61 CIB-36 TGE-59 CORS NMR-44 KDN-26 KCS BEAV-52 TYL DEIX MFLX-204 VPRT AXE-41 VLG FSTR CYMI WST RUTH QCC SMDI-148 SPSX-58 SATC-35 NXG-213 PWR-26 SPNC-105 EMKR-201 NTO-85 TGB-142 ANX-44 CUP IIP-86 MT SWW-46 STKL-48 IGT ECLG-71 ASML VCP NKTR AUY-140 SA-27 BGO-75 GMT DB-29 AKN DRH CCI-94 PRVT DA CRUS LII USB LCC-134 UBS-30 OMCL RNWK STD SPI RCNI CTEC
Shorts Outperforming Market: NONE
Stocks On Radar Screen: IMA SMOD SSI BW V
Told You So!!!: ERS
Lock In Some Profits: JDSU
13 comments:
what is your feeling of artx lot of voulme are the big boys buying this stock or what ?
Hi guys. Sorry I have been really busy with the market and all the working out I am doing.
Why did I go long FSTR. Because I can tell with the accumulation in this stock that the 50 dma will hold. I basically took a position knowing that it could dip to the 50 dma. But the chart is so beautiful and I missed the initial breakout because of the extremely low volume. Now that big insitiutions are in this stock there is some support. The fundamentals are very good too. I have bought stocks liek this before. If you have TCNET you can see how pretty this chart is. Is it a good buy for most traders. Absolutely not. You are right when you said it looks to extended. It is on a weekly chart without a doubt. Who knows I could be very wrong with this trade; I just figured that now that volume is in and fundamentals are good it will hold its 50 dma in this bull market.
OR-Kiter: Yes, this is one of the few good books that I have not read yet. Amazon here I come. Stan Weinstein's book was on a list of mine to buy a long time ago but I guess I forgot about it. Very cool that you brought it up. It would probably be on my "books" list in my blog.
Also about the book being 20 yrs old. All of the greatest stock market books are 20 yrs or older.
brd: market speculator is right. IBD did say that it was hard to count it. I did not count it and by looking at the market at Friday's close, I was right. :)
Sometimes me and IBD but heads with these accumulation distribution counts. But not often.
HYC: Chart is way too sloppy. But it is going higher. This is just not one I would play. Very good chart just not what I like to see.
ASML: I am already long this stock. It is still in a good position to be purchased.
HGR: This is a very sweet chart. It needs to spend more time going sideways or go a bit higher and then build a new base to breakout from. It is still a bit too early. It is almost ready but not quite. You could buy it here with a cut loss below the moving averages.
long and loving it. i still own little bit of gold stocks and i cant believe people keep trying to short them, yeah their extended but ill keep riding them until otherwise. i bought GFIG under $61 today, sweet volume. i also almost bought CVA but wanted to wait til Monday on that one see if it follows thru as volume is kind of sloppy on weekly chart(lots of above avg weeks). anyways, props to u josh on staying bullish(lots of noise out there). wish index volumes were a little stronger today but i'll take it. out, OR_kiter
I agree, ORKiter. Just because you don't buy the stocks becuase they are uber-extended does not mean you short them instead. Not buying a stock and shorting a stock are to different things. Just because something is a long does not mean it is short. You are still on the right side of the trade. I am still long plenty of gold stocks just not as much as I was.
GFIG and CVA both sweet. CVA will be a new long for me. GFIG is going on the watch list for a low volume pullback.
Thank you for your wonderful comments, Kiter. I always take my market cues from the indexes; never from the stupid idiot journalist and reporters that DONT trade stocks.
Sorry to be blunt here folks but this is how I roll...
F*ck the news. Pay attention to the indexes ONLY. If we are in an uptrend, there is NO reason to be bearish. Forget what they say to scare you! They get paid to scare you.
I was given a sweet job offer recently. The only catch! I was asked to be less bullish and to give people more reasons to protect their cash. You know why? He told me that market writers that foucs on the negative make more money per subscription. If that is what it takes to make money, you can have it. I don't want to go through my life doing unethical crap that the majority of wall street does. What does money buy you after you take 2 bullets to the head? Keep it in perspective.
The time will come to protect yourself. This is still not the time. I will let you know when the time is.
Keep up the great work, ORKiter. I have some class act traders reading this site. I am honored.
thanks for taking the time to do this blog, Josh. I agree with your comments about media and noise, i was on the sell-side for 7years and i made lots of stupid trading mistakes listening to worthless analysts(ie- riding massive gains down from the dotcom market) luckily i was young when i leaned all my stupid investing mistakes and didnt have lots more years to make money. the sell-side is worthless and i felt the same way your mentioned about selling crap. i just turned 30y/o so i still have lots to learn about the market. (ps- i dont usually post to anything, but i been reading your blog for 6months and i've caught a few breakouts i missed by seeing your scans). i'm always working on my sell discipline so i like reading when you take profits so i can reference the charts. thanks, OR-kiter
oops, i meant "i have lots more years to make money"...out or-kiter
cwtr decent volume breakout today but i feel late to the party on that stock so i stay on the sidelines(volume on weekly chart for this last breakout is below avg vs. prior breakouts)...what u think josh......or-kiter
hey Josh,
What do you think of GFIG?
CWTR: It is up over 1000% since its 2003 lows. Yes, you are late to the party.
GFIG: I think I want to buy this on any low volume pullback.
I have been extremely busy with fun stuff this weekend. But I will have everything updated my the opening bell. Maybe no commentary though.
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