Thursday, February 9, 2012

"The Beat Goes On" - Outlook and Setups For Friday

The beat goes on for Wall Street, as today was another bullish session with stocks moving nicely across the board.   It's been a long time since I have seen a market as smooth as this and with so many nice setups breaking out but also acting well after the breakout.   This is one of those times I wish I didn't have a full-time job because using buy stops, checking in at lunch and a bit in the afternoon, and trading after-hours is keeping me out of so many big movers.   I have had a decent year overall up to this point but I kind of feel there were many opportunities to do much better than the 14% I am up so far.   It's that kind of market and hopefully it sticks around for a while.

I am still looking for and playing longs but actually ended up with a lot of cash today as some longs were stopped with gains or at breakeven levels.  I am looking to put some positions on tomorrow if they trigger. My numbers are still very stretched but frankly the market doesn't seem to care - the S&P and Nasdaq just keep grinding higher.  Actually, the Russell 2000 has put in a great little consolidation here so many there is still gas left in the tank, specifically on the small cap side.   Keep riding the longs but do remember a shakeout is always possible at the levels we are at, so manage your trades properly and don't get greedy or sloppy.

Here are some beautiful flag patterns that were in my scans tonight.  There were others but these looked the best in my opinion.  Another day or so of rest would not be a bad thing for these names, but they could pop at any time as well.

RLD, VNET, MDC, ACAT

Earnings names are doing very well as well in this market and here are four names that reported after-hours today.   I did get in LNKD in the after-hours session but I don't know how the others will act tomorrow so I have to wait.   STMP for instance looked like they released a great number but the reaction was slightly negative.   Tomorrow should give more clarity.

LNKD, CCJ, NXPI, STMP

Here are other setups to watch.  I continue to have a difficult time narrowing down names each night as so many setups are out there right now.  I guess that's a good problem to have.

AGRO
 CTRN
 ZOLT
CPA
 EZPW
 All Charts from TC2000, Courtesy of Worden Brothers, Inc.

Good luck Friday - this market run will unfortunately not last forever but in the short-term it shows no signs of letting up.   Let's just ride it as long as we can and step away when the market tells us it needs a break.  So far, it certainly hasn't said that.  

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