Warren Buffett“A public opinion poll is no substitute for thought.”
Adlin Sinclair“Success is a welcomed gift for the uninhibited mind.”
The Relentless Bull
Harry Boxer, On 4 Charts to Watch (TheTechTrader.com)
Today’s charts focus on the long side as the market keeps pressing higher and closed Monday at new 2010 highs or at least reached them on an intraday basis.
Star Scientific, Inc. (CIGX) has been in a beautiful rising channel for the last six weeks, accelerating, and after it more than tripled it’s now flagging, with the volume dissipating and technicals holding up rather well. I’m looking for a move that takes it to the next level up around 4-plus.
City Telecom HK (CTEL) has been in a strong rising channel over the last year. The rising wedge was broken to the upside Monday, with the stock up another 64 cents or nearly 4%. Looks like this stock may be headed for the top of the channel around 19 1/2, my short-term target.
Las Vegas Sands Corp. (LVS) has been doing very well of late. It’s in a beautiful rising channel. It flagged over the last 6-7 days, and popped Monday, up 2.06 or almost 10% on 58 million shares. Looks like more upside potential. Looking for a move that takes this eventually to the mid 20’s, then high 20’s, maybe 30 range.
Quality Distribution (QLTY) broke out of a big base pattern over the last couple years, ran early March, consolidated mid-to-late March, and then the last couple days has broken out of that pattern with strong volume and is headed to higher levels. The next target up around 9 1/4 and then 11 1/2.
Other stocks featured on the Charts of the Day are Cerus Corporation (CERS), Callon Petroleum Co. (CPE), Eastman Kodak Co. (EK), Eaton Vance (EVV), Immersion Corporation (IMMR), Keryx Biopharmaceuticals (KERX), L & L Energy (LLEN), Cheniere Energy (LNG), Pozen, Inc., Rexahn Pharmaceuticals (RNN), Westport Innovations (WPRT), Xyratex Ltd. (XRTX).
Mike Paulenoff, On the Relentless Bull (MPTrader.com)
The amazing regenerating bull market continues this morning. The day started with some overnight weakness perhaps precipitated by renewed “noise” out of Europe about Greece, but which appears merely to have provided another buying opportunity for under-invested, under-performing fund managers at the advent of Q2. Be that as it may, let’s notice that the S&P 500 emini contract pivoted off this morning’s low at 1177.25, which managed (once again) to preserve the prior pullback low from yesterday, at 1174.50, and is now pushing higher to new post-March 2009 highs at 1184.25 so far. As long as 1177.25 remains intact as today’s pivot low, the e-SPM appears poised to climb towards 1200-1220 next.
Stock to watch: My chart and technical work argue that Cisco (CSCO) ended a pullback at last Thursday’s low of 25.66, and is in the early stages of a new upleg that should propel the stock to new highs above 26.85– into the 27.25/50 area initially.
Jerome “Mel” Hickerson & Gary Dean, On Overdue Pullback (MarketsPath.com)
The week began with the customary Monday pump, retraced half the gap before 9:45, then ran hard until 11am putting the high of the session on the chart at 10:53. The rest of the session was essentially consolidation, sideways with a slight downward bias.
The market appears to have consolidated with a sideways correction over the last week. This seems bullish. All of the major averages on the major indices are rising; once again bullish. The market is well overdue for a pullback; we have passed any historical guides. The market moves in cycles; but this market seems only to move in one direction. So everyone must be bullish as the indices breakout to the upside.
From Gary Dean: Many technical indicators are pretty overcooked and each rally seems like it is coming in a gap and sideways-type style. So once the cash markets catch up to the futures, it simply goes sideways. As tough as it is to watch, it is showing us the same type of action that took place in the November/January ramp where it was a very slow gap-up and sideways-type action. Once the overnight pump was completed and it was up to the cash markets to start driving the car, we wiped out three months of gains in give days.
Is there ANY worry of a pullback? I think Bob Pisani, one of the biggest cheerleaders on CNBC, summed it best this morning. “Dow futures are down 27 points. [A little chuckle in his voice.] The Dow has rallied 10% in just seven weeks and April is the best month of the year for the market. The Fed minutes come out today and maybe that will put us over the top. It is only a matter of time.”
It is this type of mentality that will have many discounting any pullback that hits the tape. When we were topping in October of 2007, do you think anybody thought that was the top? If you think yes, then why did so many lose so much during the crash?
Jack Steiman, On Staying with the Trend (SwingTradeOnline.com)
The jobs number came out weak, but at least there was some growth and in a bull market that’s good enough for your average buyer. Possessed might be an appropriate word for this market, yet if you look at it, it feels better than it is. We are grinding and not blasting. It has been this way for a while but stocks keep rocking higher if you know where to look.
Commodity stocks are on fire. Lots of other areas doing very nicely as well. It is a stock specific market although you’d be hard-pressed to find an area doing badly. However, if you do your homework, there are areas far outperforming. Bottom line is, the market marches on in the face of overbought and in the face of disappointing job numbers. Impressive!!
We were at 29.7% more bulls than bears coming in to this week and it’s probably a strong bet that those numbers are now going to be over 30%. We know that once it’s over 30% the red flag gets waived, and over 35% the market is in trouble. It took 37.5% to nail this market lower last go around and who knows what’ll it take this time.
We need to start paying very close attention to the numbers now as we could be heading for extreme danger sooner than we’d all like. When the optimism is too strong it’ll be time to head to cash and I’ll know those numbers on Wednesday morning.
The S&P 500 continues to put distance between current price and 1151 support. It’s now about 3 full percent above thus any normal pullback should find strong support there. The way stock bases are setting up and breaking out, it may put more distance away from it first before pulling back. These stocks are breaking out, putting in handles of varying lengths and breaking out all over again. The wash, rinse, repeat cycle continues unabated. When it ends is anyone’s guess, but you must play the trend in place until it is no more, and that includes buying weakness when it actually shows itself. These bull-flag handles will have to start breaking down before we can even think about getting bearish for any period of time. For now we stay with the trend in place as always. Never fight it. We will get caught in a play or two when this thing finally pulls back hard, but let’s just roll with things for now.
Published on Wed, Apr 7 2010, 07:05 GMT