Morning folks. futures are
We started yesterday with another gap up… The russell did make an effort to take out last weeks highs but then we just faded back when it failed and consolidated rest of the day. Some could take that as a bearish sign but when the market is this extended and overbought anyway sideways moves without a strong snapback is bullish in my book. The volume was a bit low yesterday and financials are still looking like crap. Sooner or later we will need some of these laggard sectors to come into play if the market is to breakout to new highs and stay.
Oil is starting to get a bit overbought. As you can see on the chart of $uso oil tends to run to the upside and down a bit farther then you anticipate. It always overshoots so we may still have a bit more to go. But you can see over time when it starts to get real stretched and overbought big snapbacks can occur
even with market consolidating there was action all over the place with breakouts. Small gaming stocks led by $cool ( up 20%) were exploding to the upside. We started to sell out of our position in $mcz in the 2.3s having loaded up at 1.92 avg booking over 20% gain. Im still holding a partial position for 2.5s plus. Nice clean breakouts like $merc $ct $cool $aen all over the place. Thats a real bullish sign as often the last month the breakouts tend to fade quick. We had nice follow through in a majority of the breakout setups I was watching.
overall the action is very good these days.. Any dips for now should be buying opportunities till proven otherwise.
stocks im watching today for quick swings/daytrades