I've been busy trying to get my new word press powered blog started up and this is the reason I'm now only posting this update this morning instead of last night as I usually would. Needless to say none of the short set ups from last night's watch list triggered while both of the long ideas did so with $SIMO really exploding and closing up over 13%! This was mainly due to the upside explosion in the markets yesterday. Before yesterday, I honestly thought that we were on the brink of breaking down further but after today I'm leaning towards a sustained uptrend for at least the next few weeks. I am seeing a lot of stocks breaking out of nice bases ($IMRS, $DBLE, $ALLT to name a few) and very few stocks breaking down (except for the rare earths). The semis which I was bearish on exploded higher yesterday and so this is clear evidence that the markets want higher not lower!
Not as many as you might have expected but most of the stocks that I would love to own like $IMRS and $ALLT are short term very extended. I prefer to wait for at least a few days of sideways movement or pull back before taking positions in these stocks. I know some will rip higher without dipping/consolidating for days but buying extended stocks does not fit into my trading plan! So I wait for the stocks I love to come to me.
Good luck and good trading!