Iffy Market

Deteriorating breadth last couple of days.  Extreme bullishness was in the air.  All of the indexes down relatively big today.  It pays to be cautious.  I have been advocating limited exposure to the markets in light of extreme bullishness.  Wait and watch mode to see if any buying comes in to support the markets at these levels.  Be prudent and honor your stops.  Don't let the gains from the last few weeks rally evaporate.

Flat Market

Markets closed almost flat on Friday's session.  Thursday's action seemed like the rally would gain some momentum.  But Friday's action was complete opposite.  What does this tell you.  This is not time to be fully invested.  Cut your losers.  Let the markets prove that there is more juice for the rally to continue.  A few stocks of interest for a long position.

Nice Recovery

Markets gapped down at the open and spent the rest of the day recovering.  A little shake out of the weak hands.  The bullish trend is still intact.  Stocks of interest for today.  

Sideways Market

Markets are in sideways motion.  However more than a handful of stocks perked up on my scans showing an intent for breaking out of range to the upside.  Markets may have another leg up before some sort of a correction.  Here are some stocks of interest.

Market uptrend intact

A lot of bullishness in air.  I would keep my new buys under check.  Probably take a small pilot position to test the waters.  If it works add more.  Healthcare was the leading sector today.  Promptly a few stocks from the same sector showed up on my scans. One stock I have to mention here is AAPL which closed above 700 for the first time.

Choppy Zone

Markets are in a choppy zone.  This is where you should lower your profit expectations and take profits quickly if you have one.  If a stock you bought is not working as intended, cut loose.  Don't let small loses turn into big ones.  I would be very selective in any new stock purchases at these levels.  The number of stocks showing up on my bullish scan is dwindling.  Having said that the Fed induced rally is still intact until we see heavy selling in large number of stocks accompanied by volume.  Your portfolio will be a good indicator of the nature of the Market.  If your portfolio is struggling to show profits it is about time you tighten your stops be prudent.  Only 3 stocks showed up on scans on the long side.

Markets are in a Frothy zone

Expect some consolidation or correction in the markets as we are in frothy zone.  Take partial profits if you have.  Raise your stops and stick to it.

Fed induced QE3 Rally

"(Reuters) - The Federal Reserve launched another aggressive stimulus program on Thursday, saying it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market." - link

Markets extended their rally and rallied hard today after the Fed announcement.  For the bullish feeling evoked by this rally, the breadth numbers I track are not convincing.  The next logical move would be a consolidation of the move.  We are in a zone where overextended stocks may get punished.  Do not chase extended stocks. These kind of rallies give you an opportunity to sell into strength and take some profits.

Here are some stocks showing up on my scans setting up with big volume for a potential upside move.

  

Stocks with upside potential for 09-11-12

Digestion

Markets are digesting the break-out move that occurred on Sep'06.  There was bound to be some profit taking after such a big move. Based on my indicators there may be more room to the upside before a reversal.  Trading the Markets is a probability game.  Trade only when the odds are in your favor.  The key is to lose small and win big.  Managing risk and not be afraid to take losses in small should be the number one priority if you want to survive and profit consistently over the long run.  Only 2 stocks worth mentioning that showed up on my scans today.  

Strong Rally - Breakouts Galore

We witnessed a strong rally spurred by ECB's bond buying initiative.  News does not matter.  Markets have been consolidating near highs for the past few sessions as noted in my previous posts.  Nasdaq 100 is at an all time high.  SPY, RUT, COMP are all knocking their previous highs set in Mar-Apr of this year.  This was a low volume rally to begin with a few weeks ago.   Number of stocks participating in today's move is higher relative to the slow upward grind of the last few weeks on weak breadth.  There were several breakouts today.  Financial stocks did very well.  Here are charts of a few stocks that have been consolidating and breaking out today.  These charts are live charts from Finviz.com.