8/9/2010 gameplan | Bulls on Wall Street

8/9/2010 gameplan

 
 
 
 
 
SPY still above major support so holding longs is still a valid swing strategy. As we are noticing through the jobs report and the gdp the big gap downs are being bought which is what we have been doing in the boom factory.   How long this pattern plays out is just a guess as none of can guess accurately.  We do have a fed meeting tomorrow.  Much of Wallstreet is looking for a hint on whether a 2nd round of Quantitative Easing will happen.  QE can be very good for the short term but there has never been a true success story in the longterm.  Polittically it might not even be feasible for Bernanke to hint about it so this could be a non starter. With elections coming up financial trickery might not be tolerated as well it normally is.  Regardless the market strength has been somewhat strong with weakness getting bought.  Some underlying concerns would be that the vol pattern hasnt been great  and that stochastics are indicating overbought readings.  Even the overbought readings are showing a weakening divergence notice how the last 3 readings each one is getting slightly weaker or progressivley lower. The reward to risk ratios are still curently favorable but we are getting a couple negative divergences (ie stochastics, vol)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 $jaso has same pattern as SOL its also looking good
 
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some more liquid large cap names that have tremoundous momo and good charts
 
ANR,BID, CXO, DNDN, INFA, RL, RVBD, SONO, VMW
 
FOR large caps or midcaps i 90% of the time buy pullbacks to supports. Very rarely except in the case of earnings breakouts or tight flags on big momo stocks do i just buy on breaks.
 
 
 

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