Thursday, January 12, 2012

Slow and Steady So Far for Mr. Market - Setups for Friday

We saw another up session today, one in which individual stocks for the most part continued to act quite well.   We've now been up six straight sessions on the Nasdaq and seven out of eight for the S&P, but what has been unique is that all six of those positive sessions on the Nasdaq have been less than one percent gains.  It's been a relatively smooth, slow move up so far, and I guess since we're all used to the volatility of 2011, it takes a while to get used to a slower moving market.

I have no clue as to how long this market will continue to rise, but for now it is doing just that and there is no reason to fight it.   On my measurements, we are not oversold and although there are things that are "wrong" about this rally (please see Pradeep's summary from today in which he makes some very good observations to keep in the back of your mind), I am going to keep looking for longs and trying to ride the longs I have as patiently as possible.  

Here are the setups I will be watching tomorrow.   I did enter a few names today and hope to see some follow-through with these names tomorrow (STAA, NFLX).   I continue to hold a few names as well from previous sessions (BEE, IIVI, CROX, CCJ).  If you are a day-trader or looking for some fast movers, I would pay attention to solar names like YGE, JKS, and STP.  They popped yesterday and tried to give some back today, but all finished near their highs which tells me they may have some more momentum in them, so keep your eyes open.   A few names that I've posted earlier in the week like NXPI, CSOD, KKD, and VDSI are still on my list as well as they haven't yet moved.

Charts from TC2000, Courtesy of Worden Brothers, Inc.

Good luck Friday.   Hopefully we can end the week on a strong note.   If the market starts flashing warning signs, I will act but for now, things look pretty good out there.   Take care.

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