The bears failed to press their advantage...

The market rebounded today and demonstrated the underlying strength. The bears once again failed to press the tape down. Now market is in red hot momentum territory. Such phase can be very profitable for short term trading as number of stocks make 10% plus move in a day increase sharply.

The stocks up 50% or more in a month is at 19. That is runaway moves market. One must play the momentum with one hand on exit door, but there is lots of money to be made in such runaway environment. It gets the bears blood boiling, hey but that is the way market operates. Keep buying the dips till it stops working.

Let us look at " What went down and what went up"

What went up
There are 127 stocks up 4% plus on higher volume. The Double Trouble universe had 43 stocks up 4%.

ACGY ADG AIXD AL ALGN ALLT ALTI AMRI APTM ARUN ASPV ASYS ATCO AVCI AZZ BCGI BEAS BHIP BKI BMRN BPUR BZP CBG CCF CHAP CHP CHTP CIPH CKSW CMC CNH CPST CYTR DAKT DRYS EBS EGLE EMS ENR EPIQ
========
ESIO EXM FIZZ GLNG GMTN GNK GSX HHGP HNAB HOKU ICE IFON IGLD IIIN INNO ISO ISSI JRJC KOOL LOOP LPHI METH MFRI MZT NANO NBSC NENG NM NMGC NMX NOVC NPLA NUAN NUCO NYX PANC PDEX PYX QUIK REDF
========
RFMD RKT SBEI SCON SGMO SGP SIFY SIGM SIRF SIRT SOFO SQNM SSL STEC STRA STSI SVNT SWIM SWKS THRX TRCA TRFX TRT TTC TTF TTGT TUES USEY USNA VEXP VII VLCCF VNX VQ VRNM VSE VSEC VSR WCRX WG
========
WGAT WHI WPL WPSC YUM ZILA ZIXI

Double Trouble Breakouts:
AL ALGN APTM ASYS ATCO AZZ BCGI BHIP BKI CCF CHAP CHTP CKSW CNH DRYS EMS EXM GNK HHGP HOKU ICE IGLD INNO JRJC LOOP LPHI METH MFRI NM NPLA NUAN RKT SBEI SGMO SIGM SQNM SVNT TRT VII VSEC
========
VSR WG ZIXI

70 plus EPS ratings breakouts:

AL AMRI AVCI BEAS BKI CBG CCF CKSW CMC CNH DRYS ENR EXM FIZZ GLNG ICE IGLD JRJC LOOP LPHI METH MFRI NMX NUAN NYX REDF RFMD RKT SGP SIGM SIRF STEC STRA SWKS TRFX TRT TTC USNA VII VSEC
========
WCRX YUM

What Went Down
61 Stocks were down 4% or more on high volume.
AFN AHII AHM ALLI ALTU BFF CAE CHS COWN CPKI CPWR CRY CRZO DANKY DECK DEIX DWSN EFUT EMKR EPCT EPIX FLDR FRPT FSTR GMCR GNA HITK HMB HSOA IDMI ILE LBIX MBWM MCEL MGAM MHGC NOVN OPX PENX PLM
========
PRX PTT QFAB RAS SLM SNG SPAN SPC SVA SYNL TATTF TLCV TMY TOA TRX TRX.B VSGN VTAL WHT ZF ZZ

As earnings start trickling in, some of the stocks running in anticipation of earnings are likely to breakdown post earnings. So this red hot momentum going in to earning season, if it continues might set us up for a correction post earnings. I personally would welcome that as I have planned a long vacation ( in August) to coincide with it. Let us see how that plays out.

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3 comments:

Joe said...: Pradeep,

Thanks for your very informative blog. Quick question: does 1.25$ IBD newpaper come out Thursdays?

Thanks, Joe; Jul 11, 2007, 8:53:00 PM
Matt said...: Joe,
IBD is published every day, but Thursday posts the IBD200 list. I found it at Books a Million.; Jul 11, 2007, 10:33:00 PM
gosu said...: While everyone is focussed on ICE, I think NMX is a very good buy.; Jul 11, 2007, 10:50:00 PM

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