Consolidation
So far, the market is consolidating Bullishly. Better yet, there's signs of accumulation in laggard sectors and plenty of skepticism. The trend has turned up and no one believes it. That's good news for long side traders.
DOW: The Dow has an impulsive look to it.
S&P500: The S&P is not far at all from turning its weekly trend up.
NDX: The Nasdaq has turned its weekly trend, which implies weeks of rally ahead of us. The Cumulative A/D line is very close to confirming an intermediate-term trend change.
QQQQ: The Q's put in a good day on Friday.
HUI: The Gold Bugs index looks like it's under some accumulation, to me. It may be early, but I'm looking for opportunities here.
SMH: The Semi's broke up and I think that they have turned. That's good news for the Nasdaq. There's a bit of congestion just above, but all in all, I think that the next stop is 35.
WEBX: Web Ex keeps grinding higher.
NSTK: Nastech broke up late in the day. It could be a fake but it could also be the real thing. Monday is a key day.
AMGN: Amgen is doggin' it. It's such a market stock, however, that we shouldn't be surprised that it pulls back when the SPX does.
INTC: I'm liking how our Intel is playing. Note, I hold this in managed accounts.
TASR: Taser is an interesting play. I think that above the recent highs brings on a short squeeze and a lot of retail interest. We're just going for a quick trade so don't cheat and don't marry this one.
EBAY: Ebay is a great company, but the stock looks broken. I don't think that long term Buyers should consider this one above 26-ish, but near term, it could have a bit of life in it.
VLO: Valero has a look of a major top forming. For now, we watch, but I think it possible that Oil stocks are in for a pretty solid correction.
RBK: Reebok looks sick and below the recent lows, it looks sickening. I don't want to short in a Bull market, but this one might be a play.
Summary:
For now, we look long. The market is strong and early in its rally phase. Later, and hopefully much higher, we will beging nibbling at short sales to position for what could well be a more important high, but until then, we play the long patterns.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
Current Positions:
Long NSTK at 10.21, move stop to 10.00
Long WEBX at 22.01, stop at 21.75
Long INTC at 23.46, move stop to 24.00
Long AMGN at 58.96, stop at 57.90
Watch List:
TASR: Buy 50% position on a print of 9.86, stop at 9.08
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