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Byaaronmat-admin

Short covering on anticpation of more printing of money announced by Bernanke tomorrow…as the hedgies have been short. Short covering of the euro as the euro has had its largest short position ever. Sell the bonds to move into equities. The ECB dude says they will act…combined owth oversold conditions and wham. I expected a bounce but not this. Here are a few notes from IBD BIG PICTURE tonight:

“Stocks enjoyed their biggest single-session gain in more than two weeks as volume climbed Wednesday.

Leading stocks acted well, but the day was largely a celebration of more defensive issues. Most high-growth stocks continued to build their bases.

While the size of the tech-heavy composite’s gain would have qualified as a follow-through — which signals a major market turn to the upside may be in the works — its timing does not.

Virtually every follow-through over the past 100 years took place on Day 4 of a new rally attempt or later. The strongest follow-throughs — think Oct. 15, 2002, and March 17, 2003, by the Nasdaq, or March 12, 2009, by the S&P 500 — tend to take place on the fourth through seventh days.

In contrast, Wednesday’s powerful move came on Day 3 of a new rally attempt that began with Monday’s positive reversal.

It’s best to let the market show that it’s comfortable with the present and the future. Winning stocks break out and the stock market traces a strong uptrend well before the cloud of uncertainty lifts.

Wednesday featured more stocks making new highs than new lows. Yet the market still carries a highly defensive tone, as seen in two forms. One, as seen among strong movers in the IBD Big Cap 20, investors in phone service, tissues and electricity had a good day.”
OK…back to me:

First off, here is my favorites list with some notes:

AMZN-held 50 day on recent pullback but lots of resistance into 233…with shaky earnings.
ALXN-basing since March…somewhat suspect base but very good r/s.
BBBY-holding 50 day on every pullback as it ascends from strong earnings move in April.
BIIB-rallies back above 50 day which it has held for months.
CRUS-holds 50 day on harsh pullback.
CERN-pulls back into the 50 day and holding.
DDS-holding 50 day again.
DLTR-teflon stock gaps down…and right back up nearing highs.
EBAY-holds 50 day and back in base formed from last gap to the upside.
EXPE-new highs…strong r/s…accelerating numbers off big gap.
GNC-holding 50 day here…not by much.
MNST-really strong holding 21 day as it ascends.
PETM-strong reaction to numbers…and moving out of flag.
ROST-another discounter refuses to buckle-reverses back above 50 day and ascends.
SHW-never thought a paint stock could be this strong.
SWI-holding 50 day.
TRIP-same group as EXPE…basing between 40 and 45.
TJX- another holding 50 day all the way up…another discounter.
UA-almost into new highs…basing for 12 weeks.
ULTA- back above 50 day off numbers…we’ll see.
WFM-ascending bases above the 50 day…almost breaking out.

Low volume names:
 
AZO-leaps back above the 50 day.
BEAM-holding the 50 day again.
DDD-very strong…inconsistent numbers.
LQDT-ascending 50 day and basing up here.
MLNX-moving out of flaggish pattern today.
NTES-holds 50 and ramps into almost new highs.
PCYC-into new highs…very strong…no sales in 3 of the past 4 qtrs.
TFM-same group as WFM…needs pulling in now.
WWWW-actually moving out today.

AAPL is basing constructively but under the 50 day right now. Same for CMG.

Please review. They all have the same thing in common…great r/s…ability to hold support/moving averages and on most up days, they show good action. Does one buy here? I think you can be measured playing it stock by stock. If this is meaningful from today, more names show up and some of these names will pop out. If any name breaks below the 10 week/50 day, they come off this list.

I think you can get back in on DLTR as it moves out again. This service has done very well with this stock. Use a break of the 50 day as a stop. Would only play partial…maybe 25% of normal. I am also interested in EXPE,WFM,PETM,MNST and EBAY but need a better set up.

This does not change my feeling on the short side as I told you we need a rally first. Keep in mind, the market topped out last year…rallied back almost to the highs before really crapping out. The fed speaks tomorrow and I wonder what happens if Bernanke says nothing about more printing of money. I will have more in the morning.