After a very wild day of trading with little news, stocks finished higher for the 2nd straight day in a row. The only news of the day was the same great news out of the Dow Jones Industrial Average. This time it came with .10 cents of hitting 11,878. Congrats, Dow.
At the close, the SP 600 led the indexes with a .23% gain, the SP 500 finished .2% higher, the Nasdaq followed with a .16% gain, and the Dow Jones Industrial Average cruised in with a .08% gain. The good news for the fifth day in a row was the fact that the IBD 100 led to the upside (or lagged to the downside) again, with a .4% gain. Just the way it is supposed to be.
Volume rose on both the NYSE and the Nasdaq, after a holiday shortened session on Monday which saw the bond market closed. Breadth was positive on both the NYSE and the Nasdaq by a 8-to-7 margin.
Even though the upside has cooled down the past three days, the bears still can not get much going on the downside. The longer the market holds these gains and shows no signs of rolling over, the more probable the dips will be bought by stranded longs and lost bears. Performance anxiety is bound to set in after such a great quarter for stocks. If the strength continues you can guarantee some traders will have to try to play catch up.
It is time for earnings season again. The way stocks have acted coming into earnings should be great news for shareholders. However, if stocks start blowing up everywhere then we will have to take defensive action and make the appropriate moves to protect our portfolio. Until that scenario happens, stocks are still acting like things are going to be fine and maintaining the status quo is the correct action to take.
The best scenario this earnings season is to see your stocks crush the EPS and sales guidance to the upside and then see those shares run. The other great news could be the stocks missing their EPS and sales growth but still make great runs. If that scenario happens, I would call that more bullish than the former situation.
The worst case scenario is no matter what the stock announces the stock sells off. If that is the case selling your shares and raising cash is normally the wisest of actions.
It seemed like a very boring day out there today. The intraday % swing on the indexes confirms that it just wasn't me that was bored; the market was bored too.
Enjoy the A's vs. Tigers game. Hopefully, we will have some fireworks tomorrow as the past two days have been quite dull. I will see you at Investors Paradise.
New Swing Longs: SCI KFT OMNI ILC
New Swing Shorts: NONE
Longs Outperforming (low vol non-IBD excluded): CVO-122 ZONS-64 INWK-30 XING-38 OMRI-40 STEC-42 MWRK-35 CXW-38 TYL-38 BRLC-25 CLEC-50 RMTR PRFT DIVX CPA CTCM BITS ROG LWAY ABCB AOB UAHC ICE HRZ KBAY BONT TWGP PERY SEIC BMC HMSY CAB PSPT RSTI BEAS INAP CHINA IMKTA SYX LINTA DIOD SMSC ACGL RICK DLA ETE IDXX APLX EVR LMT AHS SIMO ISYS CVLT OMTR ALXA HDIX PHRM MNG AUXL SVNT VCP TIBX NFLD GISX MYE ZTM BDX HNZ NOC SPG STZ SOFO GMTC NOVA TP ZILG
Shorts Outperforming: ZRAN-30 KMP
Cover Short Completely: SWC USU
Stocks On Radar: UARM AVCA HOLX CASB OPEN GIL TXUI BARE BMTI NABI CKR HLTH ITC BDOG
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