{+++}The bulls continued to press forward today and barring a black swan event, it looks like it may want to test the highs put in on May 2. That number is about 1370. So far the ‘Sell in May’ and go away theory need not apply, although we do have a couple of weeks left.
So far the major indexes have held their moving average support lines well and bounced. The volume yesterday was 30% below the three month average and today about 25% below. Much of that is due to Citibank ( C) and its new post split status. Citi was always the most active volume stock on the NYSE, trading an average of 500 million share a day. Since the split it is averaging about 45 million shares a day.
We had a few stocks trigger today: SCSS, ERTS, ENDP & RLD. They look great on their daily charts and now a follow through day tomorrow would be nice to really validate the breakouts. Bigger volume would be a good thing too.
The non-triggered names on our list still look good and I will leave the shorts on for a couple of more days. If commodities take another turn lower, I think CZZ should trigger on the short side.
Here are two potential longs for tomorrow. Please check the P&L tonight for any stop adjustments as well as entries and stops.
