Wednesday, September 5, 2012

My thoughts on the market and watches for tmrw

I want to let it be known that I am extremely bullish at this point! Apart from the market indexes being technically set up for higher prices; the following observations are also responsible for my stance:
  1. I'm seeing a lot of bullish charts and longs are working again. Stocks are holding onto initial gains and climbing higher intra-day versus popping and then fading their initial gains. So you just need to give them room to run ie. allow them to back and fill as they work their way higher;
  2. $IWM lead the market today for the first in a long time with many small cap break outs today. Technically the $IWM is carving out a giant 5 month cup with handle and looks poised to break out soon. Plus small and micro cap momo stocks are working again.
  3. Shorts by and large are not working. Stocks that appear extended are being bought up as soon as they start looking like they want to break down. My recommendation is to stay away from shorts unless the down move is fuelled by fresh earnings or PR news.
    With that out of the way; here are my watches for tomorrow:

**Added $CTRP and $BPAX!!

Good luck and good trading!

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