Boom Boom stocks 3/10/2011 | Bulls on Wall Street

Boom Boom stocks 3/10/2011

 

Morning folks futures are gapping down even with the price of oil down 2% plus.  For weeks we have had an inverse relationshipin the market to oil.  We saw that relationship start to unravel.  We still are coiling inside a tight range on the SPX.  Many traders will tell you when you see a setup like that the market is coiling for a big move.  For weeks it was assumed that the pressure on the markets was due to oil prices.  Now if oil prices fade back into the double digits and markets cant rally that will be an interesting sign.

 

 

we are a bit at a technical crossroads. the action in lot of stocks are nasty. the amount of breakouts that actually break 4-5% and hold for the day are minimal.  there are some clear distribution signs in the spy, qqqq, iwm.  but then the price action shows we are still in longterm uptrend/shorterm range pattern.  its starting to look the like the nazzie could break 50dma.  Also a majority of the traders ive talked to or watch are favoring a breakdown of this range we have been.  im leaning slightly bullish bias maily becauase of the sentiment by most traders that we will break lower…  99% of traders smoke crack and only because they cant afford coke.

 

what u got to do now is plan for what willu do when we break out of the range.  If u are scrambling around like a methhead when a break occurs ur going to be paralyzed by the amount of data and thinking that you have to crunch in a very short time all while a very powerful move commences.  most traders have a paralysis by analysis 99% of that is due to not having their homework done before a move occurs (they scramble for ideas constantly jumping around from thing to thing) the other 1% is because they have small brains. i myself have been on a 1 month insane gorilla run and prone to cash in many of my winnings so that i can relax and celebrate like a gentleman. over the past week ive liquidated a good chunk of swing holdings in shorterm and IRA accounts.    dont fret though folks its just money and if you’ve traded the past 6 months you’ve probably made enough return yo are probably feeling guilty when you see your friends and family grind 9-5s in ur local cubicle farm.

 

some boom boom stocks for today (not that i found many)

 

 

sppi earnings out. not so bad for a biotech. watch for volume. its near breakout. Earnings breakouts tend to be powerful in this market.

lot of biotechs showed up on my scans. we saw yesterday tons of them run. i find they are usually immune to the ebbs and flows of the general market namely becuase they are run by ghey men dressed in velour loinclothes

p.s. the men at moody’s are total co$%suckers . way to go catching spain on the downgrade 6 months after the fact

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