Trading on the Edge

Market trend:

Market Watch:

There was widespread green today. State of the Union address must have piqued investor interest in some way. But then is it just a reaction and as they say the first reactions are wrong. And do we have some of them sitting there ready to fade the rally? Well, one thing is certain, today’s action was decisively bullish and chances of follow through seem to be high since a few swing highs got taken out. All in all, market is short term overbought in this uptrending market and that means no new entries for us.

SPX: Building upon yesterday’s gains the SPX took out the recent area of resistance and swing high. That would fairly establish that this up movement has strength. Ideally, now we would like to see some follow through on this move with a healthy pullback.

COMPQ: Techs had an unexpectedly good day. Unexpected for me at least. They have been showing extreme weakness in the last few days. But I would still classify it as choppy trading action until it can decisively stay above the trading range. Right now it has reached to the top of its trading range. Next few sessions will decide if we go bullish on Nasdaq or not.

DOW: DOW is chugging along on the its bullish track and today took out previous highs.

Industry Watch:

Industries in play: Broker/Dealers, Biotech, Pharmaceuticals, Healthcare, Chemicals, Retail & Consumers

Free Stock Picks:

Today the market was weak and consequently we did not see too many triggers. Only