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,