Stocks Triggered Today
FB, QIHU, MDVN, BABA ( intraday addition)
New Potential Buys
GMCR– This stock was one of the favorite short ideas of the “smart money” for the last 100 or so points. The chart looks excellent and it is at a breakout spot. Buy the 145.50-146-50 zone. Target 155-170
Portfolio Update
We saw 4 stocks trigger today. FB, QIHU, MDVN, and BABA. The latter was entered intraday. I removed AKRX from the list because unfortunately it opened strong and gapped up through my trigger.
Upside’s Commentary
The stock market rose today on strong earnings from Apple (AAPL) and speculation that the ECB will increase its economic stimulus. The Dow was up 215, or 1.3%, to 16,615. The Nasdaq gained 103, or 2.4%, to 4,419, while the S&P 500 advanced 37, or 2.0%, to 1,941. Advancing issues outnumbered decliners by a more than 4-to-1 ratio on the NYSE, where volume was heavy.
IBM went lower again and McDonald’s recovered a bit after reporting a very lousy number.
Nothing bases anymore. Right now every stock looks the same. A V- shaped pattern after a strong V shaped market recovery. Corrections are fast in the new normal and the recoveries are faster. Hard to catch your breath. Just to give you an idea, the VIX has dropped 50% in just 5 days. Just one example would be the action in LUV. It dropped from 35 to 28 last week and its back at 35. Now that’s a V bounce. This action doesn’t give one a whole lot of time to establish positions.
Technicals
Short term support now rises to the 1929 and 1901 levels, with resistance at the 1956 and 1973 level. Short term momentum is extremely overbought.
Many stocks are still wildly oversold and I am searching for decent setups. Along that line of thinking, I am watching IACI for a possible long.
See you in the morning.
