candidates for break out or short sales for at least short term gains by buying the break (or selling the break down) on good volume and closing at least some on the first day. Today including: ABMD, CADX, CKR, ENZ, IRC, ISBC, MDVN, PMC, RCNI.
Today we looked at a 4% market rally which was one of the most predictable moves we've had in this longer term bear market as a bull flag was clearly signaling a rally. The bull flag was on continuously lower volume each day, and eventually a break out was in place. HOWEVER, we do believe we are finally in overbought conditions as a lot of amateurs piled in at the end of the day, the market rallied up to resistance lines that we had in place, and we could probably start a sell off starting monday. We also try to educate our viewers into understanding which indicators are most important, and which indicators are considered more of lagging indicators. We look at some other charts such as GS, AAPL, XLF and SPY to determine that a pull back, will only be healthy for this 2-6 month rally that we have in store, and the pull back could reach as low as 74-77, but we will talk about that on monday once we have confirmed a sell off. The sell off could also just be another consolidation move lower on low volume. It is important to give the bulls the benefit of the doubt and to trade the sell off very cautiously.