Intel was able to exceed expectations and raise their Guidance on Tuesday giving a hint the chip sector may have some life left to it. However, it was JP Morgan’s blowout earnings that opened the flood gates for buyers to step in and it wasn’t just retail. Institutions stepped up their game accumulating shares at a very good clip as volume was well above Tuesday’s level and above its average volume over the past 50 days. Today was the day I have been looking for where we have solid price gains with the necessary volume to support the move. We have a decent uptrend that should continue for a bit.
Concentrate on the leadership of this market and you’ll find yourself snagging the big winners we have seen over the past. Time and time again the methodology we use is proven to produce solid gains over the long run. What we have now is the making to get our true Monster Stocks and produce significant outperformance.
I have shown the P&F charts of the index charts and they have clearly shown this uptrend will continue. It is true volume does not accompany P&F charts, but they are a tool to gauge price action alone. Not too many use the P&F charts as they are a lost art and quite simply aren’t as “sexy” as these new “technical” tools. Most of the time keeping it simple works best rather than muddy the waters with complicated tools.
At this point you should not see any leading stocks fall apart, but they should continue to move to the upside. If we begin to see our leading stocks to fall apart like STEC it’ll be a sign that the market has topped. We have seen over the past few weeks many market pundits on CNBC, blogs, facebook, and twitter calling for a correction or top in the market. Today, they were completely obliterated and are being left behind forced to play catch up. As a wise trader once said: “you move heaven and earth to get into a leader.” It is time to begin to focus on the true leaders of the market; the quality growth stocks. We have the ingredients to really see big runs by stocks.
Remember, you have to be nimble as any moment we could see leaders crack and massive volume selling. Do NOT fall asleep trading as you could be railroaded by falling stocks. It is best to keep focused and a clear mind to reap the rewards from this rally.
