Gap Up and Breakout

8 am ET - very early Tuesday morning, Dave will be the instructor in a Basic Options Capstone webcast...he will teach Straddles and Strangles Monday's post was later today due to performing both an Advanced Options and an Advanced Technical webcast for a combined total of four and half hours+ this evening...Thank you for your patience! DJIA + 497.48, +6.84% SP500 + 54.38, +7.08% NASDAQ Comp. + 98.50, +6.76% Russell 2000 + 33.61, +8.40% Exchange NYSE NASD Advancing 3,411 2,335 Declining 445 451 Oil $53.80 +$1.73 Gold $952.50 -$3.70 SOX 234.45 +15.74 VIX 43.23 -2.66 The VIX moved down and did confirm the move up in the SPX on Monday. Strongest Sectors: XLF +16.40%...XLE +8.23%...XLI +7.25% Weakest Sectors: XLV +3.65%...XLU +3.87%...XLP +4.38% Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU Friday turned out to be the low day, on a two day pull back. News of a bad asset bank plan and better than expected existing home sales sparked a strong rally on Monday that broke above Friday's low and gave a new short term entry to the upside. The broad indices and many stocks had both a bull flag support bounce off of Friday’s low and a resistance breakout through Thursday’s high today, as you can see on many charts while forming large white candles. Keep in mind that the mid-section of a large white candle represents short term support. If prices pull back on Tuesday this will be a key area to watch. If prices either move up or stay above S1 it will be a bullish continuation sign. The Financial sector was the strongest sector again on Monday reversing Thursday and Friday’s weakness. XLF gained another +16.40%. Today’s bounce was the “higher low in this sector for the next entry opportunity” that we posted on in Friday’s post. Strong financial stocks that gained more than 16.4% included: PRU, BAC, JPM, WFC, KEY, PNC, STT, MS, C, SPG, USB, AXP, TROW, AFL, MET, ZION, BK and ETF's FAS and UYG. We continue to favor financials and their corresponding ETF’s and that is why we have listed the top stock performers here in our commentary section over the past several trading sessions. Index Commentary The DJIA closed above its 50 DMA and it 61.8% Fib retracement…formed a large white candle with a support bounce off its 30 DMA…today’s S1 is short term support The SPX closed above its 50 DMA and it 61.8% Fib retracement…formed a large white candle with a support bounce off its 30 DMA…today’s S1 is short term support The Nasdaq closed above its 78.6% Fib retracement as it bounced off its 50 DMA…today’s S1 is short term support The RUT closed above its 50 DMA and it 61.8% Fib retracement…formed a large white candle with a support bounce off its 30 DMA…today’s S1 is short term support At the Open on Tuesday SPY – large white candle breakout, +7.18% VNO – large white candle support bounce, +14.24% ARO – bullish harami/hammer, +3.57% MS – bull flag support bounce break high of low day with large white candle, +20.7% ESS – bull flag support bounce large white candle, +14.8% GS – bull flag support bounce and breakout, +15.01% SNDA – bull flag support bounce, +7.16% OSG – no follow through on bearish engulfing, break above 30 DMA, +9.35% CTSH – no follow through to downside, +4.72% LEAP – no follow through on evening star, continues above 200 DMA, new high close, +7.99% X – double bottom breakout at 30 DMA Stocks to Watch on Tuesday Leading Stocks: Holding Above 30 DMA BIDU, CLB, BKC, NFLX, DLTR, HANS, ICE, ALGT, DLB, JEC, PWR, VPRT, AMZN, MON, AAPL, CTSH, FLS, JOYG, AMX, APEI, AXYS, BAP, CAM, GMCR, GPRO, JCOM, JOSB, MUR, PETS, WMT, ATW, GR, BIIB, SLGN, SWN, SYNA, ACN, SNHY, EBAY, GES, RCI, SNA, ORCL, WRC Moving Above 30 DMA = 21 NTLS, DECK, HDB, MOS, PCP, MCD, UYG, BLUD, PCLN, PPD, RBN, FAS, FSLR, GME, ESI, WCG, RIMM, BDX, NIHD, CBST, WAB Moving Below 30 DMA = 0 Staying Below 30 DMA MYGN, CPLA, ESRX, PSYS, CHL, GILD, MHS, TDG, SPWRA, AMED, GXDX, DV, VAR, JW.A, MUR, HLF, STRA, PCR, BYI, K, AFAM, EZPW Monday’s Action (=> +$0.70 or -$0.70) Moving Up: GS, STRA, FSLR, MA, BIDU, POT, MON, MS, PCLN, CF, MOS, V, NUE, PNRA, CLF, KRE, CNX, BRCM, ONXX, SCHN, NDAQ, KBE, AGU, X, BTU, IPI, NIHD, ZION, INFY, ESRX, COH, KMT, SINA, GRMN, ANR, MEE, ADM, AFAM, HANS, EBAY, SOHU, LAMR, FWLT Moving Down: GLD Intermediate Term Market Trend: Neutral – SPX, Nasdaq, RUT Down – DJIA Short Term Market Trend: Up