Thursday, September 13, 2012

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.


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