Friday, February 11, 2011

State of the Stock Market - 2/11/10 - "Low Volume, But We Keep Going Up"

Nice session today on Wall Street - for the second straight day, the bulls fought back from some early selling and closed the market well off its lows for the day.  Unlike yesterday, the indices across the board put in gains today, and both the S&P and Nasdaq closed at new highs for the year.  Volume was not that impressive and I do believe that will catch up with the market at some point, but I don't know when that will be, so for now, things remain bullish.

I was stopped out of one long position today - I entered CHGS on Monday at $3.24 but this one never really got going.  My stop today was at $3.23, but I got a less than desirable fill at $3.20 and ended up with a small 1.9% loss on the trade.  I entered one long position at the end of today's trading as well - it flashed a pocket pivot although it is not yet above its 50 day moving average.  I am hoping to see some follow-through Monday.   That gives me four current long positions, one of which I entered after-hours yesterday and added to today. 

There were some nice movers today off of my watchlist, but I did not add any other positions.   SSW was shared on Twitter Wednesday and staged a nice breakout today from that cup with handle pattern.   SIMG moved up a bit but volume was not as strong as I would like to see.   A few others had small moves but nothing major. 

Really, the place where the action seems to be right now (and I regret missing many of these) is earnings plays.   Take a look at SFLY, GMCR(stopped out of that too early), JDSU, MERC, TNDM, NFLX, BIDU - all earnings setups and all have had tremendous follow-through.   This is what you want to see when you play one of these - get in early and hope for a major momentum run.  I haven't seen too many this week (after-hours that is) but I am keeping my eyes open. 

Good luck Monday and enjoy the weekend.  The market is a bit overextended and I still feel we are going to get a good sized pullback sometime soon, but until it happens, ride the trend, and the trend is certainly higher.  

1 comment:

marc said...

Excellent call on the SSW. QLIK looks like it is acting well and ready to pop to the upside. MELI also acting well last 2 days. PLL was an earnings play from 2 weeks ago looking ready to pop. I will share some more later but FO is a stock that looks like a big move is coming up or down. It has had takeover rumors in the past but look how tight the chart is. Anyway, thanx for all the good work.