DJIA was able to follow QQQQ's lead and broke the pattern's resistance. unfortunately though, the volume was unincredible. Again we are at good resistance.
QQQQ continues it breakout with a very strong day. The leading sector yet again but likely to pullback slightly from here.
XLF was again the laggard. But it did regain its strength in the late day to help the Dow close above 300. Still hasn't broken out yet but if it does, you can expect it to bring the indexes much higher...
USO again weakens on the strength of the dollar. it can drop some more as it has broken much of its support and showing very little strength intraday...
UUP got a nice gap up but closing near its lows is very bearish. It has already hit the pattern breakout's target so it is possible to drop back some more before it continues its rally. The huge volume also seems more like the end of a shortterm leg than a continuation of one...
Analysis: Bulls are looking good as all major indexes broke support. What is bearish is the mediocre volume. This might turn out to be a false breakout again on the indexes but judging from the intraday strength and the dollar and tech strength, i feel that this is legit. But as we are at good resistance at all the indexes, i do expect a pullback Monday or Tuesday...I think that there will be a good pullback in which to add to longs or to get out of shorts early next week, so please don't chase when buying or sell based on fear...
Game Plan: Hold longs as the 30" charts are looking bullish all around but look to add to longs if we get a low volume pullback. Material names should also get a good pullback giving good opportunties to add a short into my portfolio. Overall though, i will hold my stance of being bullish but be ready for bearish indicators that might rear its head this week....Also, i am not changing anything on the buy / sell list on this post as i was too busy to do another stock scan this weekend. But based on intraday strength / weakness and the 30" chart, i am confident that not much has changed in the technicals to make me want to make big changes in the lists.
Conviction Buy List:
Strong Retail (shld, rost)
Strong Financials (ibn, bk)
Pharma (bmy, ilmn)
Strong Tech (msft, aapl, goog, rimm, ibm)
Oversold Energy (mee)
NDAQ
Conviction Sell List:
Water Transportation (drys, osg, fro)
Some Energy (anr, btu, wlt, snp, oih, su, xle, xom, hal, slb)
Materials + Mining (clf, wlt, abx, cx)
Agriculture (agu, mon)
Weak Financials (leh,mer, nly)
SNDA
YGE
MRK
MNST
BNI
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