An upside surprise for the shorts had them quickly heading for exit. Yesterday's action was a classic short squeeze. Once the market reacted positively to the FOMC statement, the mild buying pressure turned in to full fledged panicky covering. That lead to some interesting fireworks. The cash sitting on the sideline also jumped in to drive the rally forward. After many days we have a day where volume increased. The number of breakouts was 243, ideally I would have liked 300 plus.
Expecting the strength to last for sometime. Even if this bounce is fated to fail, the strength is likely to persist for some time. There might be pullback and shakeout but next 5=10 days might be good for longs. Now if you have a set system like 100% plus or IBD200, you should not be worried. As you already have candidates to look at on long side. The IBD Select list might offer better opportunities for those looking for stocks which are not overextended. Even the 100% plus list has many stocks which are not overextended.
Notice the 100% plus universe has quickly climbed to 341. The high number before the correction started was 400. Another 2-3 days of rally and you would have the number crossing 400 again. Panicky market action on short side always has a high probability of setting up a moon shot counter trend move. The only problem is few people believe that when the panic sets in. That is one of the reason why those who buy panics make money. Maintaining your perspective when the world seems to be falling apart is critical speculation skill.
Market Monitor
Total 4% plus bullish breakouts=243
Total 4% plus bearish breakouts=23
65 day bullish/bearish ratio= 749/336
Stocks up 50% or more in a month=3
Stocks up 25% or more in a month=36
Number of stocks with 100% plus move =341
Number of stocks up 200% or more = 65
4% plus signals for 100plus universe=38
4% plus signals for 200plus universe=8
Select stocks which had 100% plus move in last 260 days from the low and which are up more than 4% on higher volume. Today's minimum volume is above 100000. To understand how to trade this see the post "How to find a stock which makes a 1500% plus move in a year".
AMAG,Advanced Magnetics Inc (Google Yahoo Earnings Chart)
AMKR,Amkor Technology Inc (Google Yahoo Earnings Chart)
ANAD,Anadigics Inc (Google Yahoo Earnings Chart)
ANO,Anooraq Resources Corp (Google Yahoo Earnings Chart)
AUXL,Auxilium Pharmaceuticals Inc (Google Yahoo Earnings Chart)
AVRX,Avalon Pharmaceuticals Inc (Google Yahoo Earnings Chart)
BIDU,Baidu.com Inc (Google Yahoo Earnings Chart)
BPA,Biosante Pharmaceuticals (Google Yahoo Earnings Chart)
CLRT,Clarient Inc (Google Yahoo Earnings Chart)
CSV,Carriage Services Inc (Google Yahoo Earnings Chart)
CTCH,Commtouch Software Ltd (Google Yahoo Earnings Chart)
CTIB,Cti Industries Corp (Google Yahoo Earnings Chart)
DRYS,Dryships (Google Yahoo Earnings Chart)
FSLR,First Solar Inc (Google Yahoo Earnings Chart)
GLDN,Golden Telecom Inc (Google Yahoo Earnings Chart)
GSIC,Gsi Commerce Inc (Google Yahoo Earnings Chart)
HXM,Homex Development Corp (Google Yahoo Earnings Chart)
IGLD,Internet Gold-Golden (Google Yahoo Earnings Chart)
JADE,Lj Internat Inc (Google Yahoo Earnings Chart)
JAV,Javelin Pharmaceuticals Inc (Google Yahoo Earnings Chart)
LNOP,Lanoptics Ltd (Google Yahoo Earnings Chart)
LXU,Lsb Industries Inc (Google Yahoo Earnings Chart)
MBT,Mobile Telesys Ojsc Ads (Google Yahoo Earnings Chart)
MEH,Midwest Express Holding (Google Yahoo Earnings Chart)
MEND,Micrus Endovascular Corp (Google Yahoo Earnings Chart)
NUAN,Nuance Communications Inc (Google Yahoo Earnings Chart)
OMG,Om Group Inc (Google Yahoo Earnings Chart)
OMTR,Omniture Inc (Google Yahoo Earnings Chart)
ONXX,Onyx Pharmaceuticals Inc (Google Yahoo Earnings Chart)
PRGX,Prg-schultz Intl Inc (Google Yahoo Earnings Chart)
PRKR,Parkervision Inc (Google Yahoo Earnings Chart)
RYAAY,Ryanair Hldgs Plc Adr (Google Yahoo Earnings Chart)
SNCR,Synchronoss Technologies Inc (Google Yahoo Earnings Chart)
TNH,Terra Nitrogen Co L.P. (Google Yahoo Earnings Chart)
TSTC,Telestone Technologies Corp (Google Yahoo Earnings Chart)
VSEA,Varian Semiconductor Equipment Associates Inc (Google Yahoo Earnings Chart)
XING,Qiao Xing Univ Telephone (Google Yahoo Earnings Chart)
ZIXI,Zix Corporation (Google Yahoo Earnings Chart)
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