After an initial stumble just before 10 am buyers stepped up and began pushing prices back into new high territory. Once again the S&P 500 and Dow have hit new all-time highs. Volume was higher for the S&P 500 a good initial sign, but lower elsewhere. The Russell 2000 led all indexes higher, but remains below its high. While the NASDAQ sits just below its multi-year high it has failed to eclipse its high set in 2000 where the Dow and S&P 500 have. A pretty decent day in the markets as we continue to see this market shake off ajny would be sellers. We still remain in overbought territory, but we continue to get new buy signals.
Since we are getting new buy signals as well as seeing well formed bases it is very hard for us to fathom a market correction here. A few days of selling without heavy distribution would be what we would expect from this market. Some might say this is a healthy market where as we would like to think of it as an opportunity to catch and ride a monster stock. Ultimately, this is our mission to find monster stocks and ride them for as long as we can. This is why we created this site. We love this game and finding these monster stocks. Why not share success? One such stock was highlighted in our Chat Room last night.
AAPL continues to be an interesting stock. Monday’s disasterous start to the month has so far held up. It has rallied back to the 10 day moving average in lighter trade. Keep an eye on this area here as a failure with volume would certainly be quite telling.
ALXN could not follow through with gains yesterday as breakouts are still finding it tough to add on to their initial breakout. CODE was able to add onto its gains after breaking out after reporting earnings Monday night. There is one biotech stock setting up for a potential breakout. Our chat room has mentioned this one before. You need to be fast and get aboard when these names appear. They will run fast.
This market will stay overbought much longer than majority of those who are short. Keep cutting our losers short and riding your winners.
