Small cap stocks along with leading growth stocks helped boost the market. The market felt sluggish for most of the day after 11am EST. It appeared as if sellers sat at the high of the day knocking down the entire market. However, just after 2pm EST stocks caught a bid and blasted through the previous high of the day vaulting to the high of the day. Sellers were simply over-powered at the 2 o’clock hour. Volume had been running higher throughout the entire day as institutions were active in the market. Volume on the NASDAQ ended above its 50 day average showing there was power behind today’s meeting. Today’s move indicates this market has a bit more legs.
We have some powerful setups occurring in great growth stocks a good sign for this market to continue higher. The important part is whether or not you will be take advantage of the situation. Despite any bear arguments, many of them very logical the setups we have out there simply render them useless. Price and volume rule the day with growth stocks and we aren’t about to ignore them simply due to an opinion. At some point we’ll see a big bad bear market, but for now we’ll stick with the leaders.
I was going to go over some charts tonight, but we have too many good looking stocks I do not have the time to mark up any charts here. Small caps are leading with the NASDAQ on its heels is all you need to know at this time. It is a green light to take solid breakouts and ride them higher.
Remember, breakouts can fail and it is prudent to employ a cut loss strategy to avoid letting a loss infecting your portfolio. Your number one rule is to keep your losses small. Do it.
Cut your losses.
