Market is churning at this level.

• Market is churning at this level.
• Breadth keeps on showing no major selling efforts so far.
• More and more lower quality stocks continue to breakout.
• That typically happens before a correction.
• We are poised for a correction but unless you see a 500 plus down day on 4% plus it will not show up.
• There has been no major buying push and breadth push as indicated by 10 day cumulative breadth ratio.
• So a weak rally has developed.
• So we are in a sideways pattern till something major pushes market in either direction.
• There is lot of sector rotation happening.
• In this earnings season, there have been no major growth stories.
• You can count on your finger the number of growth stories that have emerged from this earnings season.
• Stories like STEC, GMCR, PEGA, FIRE, LCRD, HITK are needed for big gains. Some of these are old stories.
• The stocks with best growth currently are the Chinese stocks, but the Chinese market is having nasty correction and many of the good growth stories have suffered damage .
• The Chinese stocks with potential and still holding on to their gains are PWRD , KONG, CYOU, HMIN, CHDX , CGA, TXIC, FUQI, BIDU, EJ, and VIT. These are the stocks to watch. Once Chinese market turns, these could breakout quickly.
• A stock like PWRD has potential to make a big move. As of now it is showing very good relative linearity, which tends to be a indicator of support from funds.
• From US stocks list a handful of stocks with good earnings and growth characters and with potential for big moves are: STEC, GMCR, NITE, AMSC, MED, VRX, SXCI, PEGA, SCLN, HITK, ARST, TLEO, FIRE, ANEN, LCRD, DDRX,